The investigation into concerns over potential concert party trading found
nothing wrong but did recommend that rules governing concert parties be
changed.

Eight years prior to this, after a separate regulatory investigation, Mr
Somerset-Leeke was censured by the Stock Exchange Council for improperly
handling deals on behalf of clients. He was banned from trading for three
months.

Both actions took place while Mr Somerset-Leeke was the senior partner of
stockbroker Coni Gilbert Sankey. The company no longer exists. Mr
Somerset-Leeke is not currently registered with the Financial Services
Authority as an authorised person.

Despite his large shareholding in Papua Mining Mr Somerset-Leeke is not a
director of the mining group. Its chairman is Michael Gordon Jolliffe, a
ship-broker by background. The chief executive is Hugh McCullough, a project
geologist and former chief executive of Glencar Mining.

The company has reported a number of the areas over which it has licences have
already shown promise in gold and copper deposits. Papua raised £7m through
floating 50pc of its shares on Aim last week. The shares floated at 44p. On
Monday they closed at 60.1p.

Mr Somerset-Leeke was not available to comment.