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Benjamin Bell misled investors over project funding and the value of an asset, the federal court found.
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Australian Mines MD fined $70k, banned for 2 years
15 May 2023
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Former Australian Mines managing director Benjamin Bell has been fined $70,000 and disqualified from managing corporations for two years for breaching his duties as a director.
The Federal Court decision comes after Mr Bell admitted failing to act with the care and diligence required of a director when he gave presentations at investment conferences in Hong Kong and London.
The court found he falsely claimed Australian Mines had secured funding to construct a plant for its main asset, the Sconi Project, and misled investors with a $5 billion valuation of an offtake agreement with SK Innovation.
The Federal Court found in making that statement of value Mr Bell admitted:
- He ought reasonably to have known that following inquiries by the ASX, Australian Mines had retracted the valuation as it was not consistent with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
- He failed to take reasonable steps to ensure that repeating the valuation on two occasions would not result in further inquiries by the ASX and Australian Mines having to again issue a retraction.
- He failed to cause Australian Mines to correct the representation or to inform the ASX of other information required by the JORC Code.
In handing down the penalty, Justice Colvin found Mr Bell’s contraventions to be serious and capital markets were dependent on accurate information.
ASIC deputy chair Sarah Court said Mr Bell had caused Australian Mines to breach its continuous disclosure obligations.
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“As managing director of Australian Mines, Mr Bell had an obligation to provide accurate information about his company’s dealings and make sure it complied with continuous disclosure laws,” Ms Court said.
“Continuous disclosure obligations are fundamental principles of fairness and transparency that sit at the heart of Australia’s financial markets. When directors fail in their obligations, they undermine these core principles and ASIC will look to take action.”
Mr Bell has been ordered to contribute to ASIC’s legal costs in the amount of $60,000. His disqualification commences on 12 May.
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