The corporate watchdog has launched civil penalty proceedings in the Federal Court against Wiluna Mining Corporation, its former chair Milan Jerkovic and former chief commercial officer James Malone, alleging serious disclosure failures tied to a 2022 capital raising.
ASIC alleges Wiluna breached its continuous disclosure obligations by failing to accurately announce to the ASX the amount raised via a rights issue. It also alleges Mr Jerkovic breached director duties and that Mr Malone failed to take reasonable steps to ensure statements to the market were not false and misleading.
ASIC Chair Joe Longo said, ‘Wiluna, its director and chief commercial officer allegedly engaged in serious contraventions of the Corporations Act and made misleading claims to investors.
‘The lack of transparency and subsequent corporate failure have the potential to drive a loss of confidence in our capital markets. Market integrity concerns like this may lead to diminished investor participation in capital raisings in all or sections of Australian equity markets, which ultimately impacts the Australian economy and international standing.
‘ASIC’s action highlights the importance of the need for strong corporate governance within ASX listed entities. ASIC will continue to take action to hold directors and officers of publicly listed companies accountable for their misconduct.’
According to ASIC, Wiluna told the market on 17 June 2022 that it had raised $57.3 million as part of a capital raising, but $7 million of that sum was never received. The miner entered voluntary administration on 21 July 2022. Between the June announcement and the appointment of administrators, the market was not informed that $7 million had not been received.
ASIC is seeking declarations of contravention against Wiluna, and declarations of contravention and pecuniary penalties against Mr Jerkovic and Mr Malone. The regulator has published the originating process and concise statement on its website.
Wiluna Mining Corporation Limited (formerly Blackham Resources Limited) operated the Wiluna gold mine in the northern goldfields of Western Australia. On 21 July 2022, its board appointed Michael Ryan, Kate Warwick, Ian Francis and Daniel Woodhouse of FTI Consulting as administrators. The company was de-listed by the ASX on 5 April 2024 after failing to lodge its half-year report for the six months ended 31 December 2022.
