PERTH (miningweekly.com) - Iron-ore junior BC Iron has paid a A$66 000 penalty for failing to comply with the continuous disclosure provision of the Corporations Act.
The Australian Securities and Investment Commission (ASIC) served an infringement notice on the alleged continuous disclosure breach relating to a scheme implementation agreement which BC Iron entered into in 2011, with Hong Kong-listed Regent Pacific.
At the start of 2011, BC Iron entered into a scheme implementation agreement with Regent Pacific, which controls a 19.49% stake in the iron-ore miner, under which Regent offered to acquire all BC Iron’s shares for A$3.30 a share.
ASIC said that the details of the scheme implementation agreement submitted to the ASX failed to list two material terms relating to Regent’s ability to terminate the agreement.
BC Iron later abandoned its scheme implementation agreement with Regent, after independent expert KPMG concluded that the proposed takeover was neither fair, nor reasonable.