The insider dealing section of the London Stock Exchange conducted an inquiry in 1991 into transactions in the shares of Feltrim Mining by directors and former directors of the company.
The investigation into Feltrim followed an anonymous telephone call to the London exchange, the then managing director of Feltrim, Mr Conor Haughey, said at the time.
The investigation covered the period during which there was a reverse takeover of Feltrim by Connery Minerals and resignations by two directors, Mr John David and Mr James Fitzimons.
Mr Haughey told The Irish Times following the completion of the stock exchange inquiry that the exchange was "happy with the situation at Feltrim". Davy, the company's stockbrokers, said the exchange had agreed there were "no errors" involved.
Mr Haughey said all the directors had replied to a letter from the company secretary requesting details of their share dealings in the 12 months to July 31st, 1990, indicating that they had not dealt in the company's shares in the period concerned.
The letter from the company secretary referred to transactions in the shares in Feltrim and "presumably its unquoted subsidiary, Connery Resources".
Around the time of the two directors' resignations, a shareholder, Mr Derek Kelly, issued a statement saying substantial shareholders would be inviting the authorities to investigate Feltrim. Mr Kelly said the shareholders concerned were considering taking legal action regarding alleged transactions which may have taken place during a dinner held in the Shelbourne Hotel, Dublin. Feltrim's shares went from 40p to 80p on their first day of trading in April 1988, when the company raised £1 million. However the share price fell steadily afterwards, and by February 1992 they were trading at only 3p. Some 600 to 700 investors bought shares.
Feltrim reported losses equivalent to 33.6p per share for 1989. It spent £600,000 investigating prospects in Mexico which had been identified by Mr Haughey but which led to no discoveries. Figures given yesterday to the Moriarty tribunal showed losses for 1990 and 1991 of £283,925 and £1.4 million respectively.
When the company held an a.g.m. in Dublin on March 31st, 1992, neither Mr Bernard Cahill, its chairman, nor Mr Conor Haughey, managing director, attended. Both men had earlier announced their intention to resign, though Mr Haughey was remaining a director. During 1992 nine directors had resigned, and another had died.
The meeting voted to change the name of the company to Minmet plc. It was taken over by new management.
In May 1993 it emerged that Mr Haughey was converting owed salary of £15,000 and a loan owed to him of £16,000 into Minmet shares. A month later he resigned as a director.