Navigator Resources has paid a $33,000 fine issued by Australia’s corporate watchdog, after ASIC alleged the struggling gold miner made misleading statements relating to a capital raising last year.
ASIC alleged Navigator made misleading statements about the status of Patersons Securities as underwriter for a renounceable rights issue announced on June 20, 2011.
ASIC said Patersons’ appointment as underwriter would only take effect upon execution of a formal underwriting agreement which had not been entered into, while Navigator’s announcement implied the stockbroker was legally bound to underwrite the raising.
“Further, Patersons’ appointment as underwriter was conditional upon a satisfactory outcome of a due diligence process which had not yet been completed,” ASIC said.
The regulator said Navigator is not regarded as having contravened the Corporations Act, and that payment of the penalty was not an admission of guilt or liability.