Northern Minerals cyberhacking, share sale order unrelated, chairman says (updated)

Northern Minerals

06/06/2024 04:43

(Adds China-linked board nominations fail, in the last two
paragraphs)
    By Scott Murdoch
       SYDNEY, June 6 (Reuters) - An Australian government
order to several China-linked investors to dispose of shares in
Northern Minerals  NTU.AX  was not connected with the rare
earths miner's revelation this week of a data leak by
cyberhackers, its chairman said on Thursday.
    Northern Minerals said on Tuesday some of its corporate,
operational and financial data had been released on the dark web
following a cyberattack in March.
    The announcement came one day after Australian Treasurer Jim
Chalmers ordered several China-linked investors to dispose of
Northern Mineral shares on national interest grounds.
    Executive Chairman Adam Handley told the company's
shareholder meeting in Perth on Thursday the attack and the
divestiture order were not linked.
    "As is typical with cyber security attacks on corporations
like Northern Minerals, the hackers demanded a ransom from us.
Northern Minerals, out of principle, refused to engage with the
hackers on a ransom," he said.
    "The fact we disclosed the cyber security breach a day after
the Treasurer's divestiture order was announced is a
coincidence. There are no suggestions, contrary to some media
speculation, that the two events are linked in any way."
    Chalmers said Yuxiao Fund and other investors linked to it
had 60 days to dispose of 80 million Northern Minerals shares
they bought in September.
    The number of shares that must be divested amounts to around
10.4% of Northern Minerals' issued share capital.
    Northern Minerals has said the ultimate controller of Yuxiao
Fund is Chinese national Wu Tao, whose nomination to join the
board failed, the company announced at its annual meeting on
Thursday.
    The nomination of two other board candidates who were
proposed by entities and individuals named in the Treasurer's
divestment order on Monday also failed at the meeting.

 (Reporting by Scott Murdoch and Kirsty Needham; Editing by
Sonali Paul and Christopher Cushing)
 ((Scott.Murdoch@thomsonreuters.com))