PERTH (miningweekly.com) – Junior explorer Gold Mountain has been fined A$33 000 by the Australian Securities and Investment Commission (Asic) for an alleged failure to comply with its continuous disclosure obligations to the ASX.
Asic on Tuesday said that the company has also been restricted from eligibility to issue a reduced-content prospectus until July next year, meaning the company had to issue a full prospectus if it wished to raise funds from retail investors.
The penalty was handed down following an investigation into statements made by the company in 2017, which Asic said did not comply with the Joint Ore Reserves Committee (Jorc) code.
The statements in question implied that Gold Mountain had established a Jorc-compliant mineralisation of 281 350 oz of gold which was capable of economic extraction, and which could deliver some A$337-million in future revenues.
Asic said on Tuesday that Gold Mountain should have retracted the statement in July of 2017, when the statement was initially made, instead of in August that year.
“Listed companies must immediately notify the ASX of information that a reasonable person would expect to have a material effect on the price or value of the company's securities. This obligation also applies to correcting misinformation of which the company is aware and publicly available,” Asic commissioner Cathie Armour said.