African Resources Inc., a natural resource development company, said this week that it is preparing legal action against Chase Manhattan Bank for sustained damages as a result of unauthorized trading of the company's securities.

Chase officials declined to comment.

African Resources alleges that on April 28 last year Chase engaged in unauthorized trading of one million shares of the company's common stock and sold it into the open market within a 30-minute period. Those moves, African Resources claimed, depressed its share price to 1 cent, from 60 cents. At the time of the incident, the company's tradable float was less than 600,000 common shares, African Resources said.

African Resources has gold and diamond concessions in Guinea and gold mining operations in Arizona.

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