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Asic launches legal action against Astra

22nd May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The Australian Securities and Investment Commission (Asic) has initiated legal action against Adelaide-based Astra Resources and its directors, alleging the company illegally raised more than A$7.6-million between 2011 and 2012.

The civil proceeding, launched in the Federal Court, included directors Jaydeep Biswas and Silvana De Cianni, as well as former director Barrie Meerkin. Astra Resources subsidiary Astra Consolidated Nominees is also facing legal action.

Asic claims that the funds were raised from investors in Australia in breach of the Corporations Act, which requires a prospectus or disclosure document to be provided to investors so that they have all the information needed to make an informed decision about whether or not to purchase shares.

Asic further alleges Biswas, Meerkin and De Cianni failed to take reasonable steps as directors to prevent the illegal fundraising.

Asic was seeking orders to have Astra Resources and Astra Nominees inform affected shareholders that they might elect to have the share purchase contracts set aside and claim a refund or damages.

The proceedings are listed for a directions hearing in the Federal Court in Adelaide on June 3.

Astra holds gold interests in South-East Asia, as well as a coal mine in Africa, iron-ore deposits in India and the Philippines, and is a purveyor of mining technologies.

Edited by Creamer Media Reporter

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