Australian Mines in $450,000 ASIC settlement

Australian Mines in $450,000 ASIC settlement

Australian Mines in $450,000 ASIC settlement

The Sconi project.

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Australian Mines has settled proceedings taken against it by the Australian Securities and Investments Commission for making “certain admissions of contraventions of its continuous disclosure obligations”.

The matter related to announcements by the company to the ASX with respect to its  Sconi project in Queensland.

ASIC noted that on February 19, 2018, Australian Mines declared that it had entered a term sheet for an offtake agreement with SK Innovation for the expected cobalt and nickel product from Sconi.

ASIC alleges that when former managing director Benjamin Bell Bell presented at mining investment conferences in Hong Kong and London between April and May 2018, he:

falsely claimed that Australian Mines had secured funding from SK Innovation for its construction of a plant for Sconi, expected to cost $500 million or more, when in fact no one had offered or agreed such funding
misleadingly stated that the value of the offtake agreement was $5 billion when the terms of the agreement included a potential buyer’s discount of 15 per cent.

The company and ASIC will make a joint submission to the Federal Court that the appropriate penalty is $450,000, with Australian Mines also paying $55,550 for ASIC’s costs.

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ASIC action against Australian Mines

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