Date: 14 April 2025
Source: Australian Securities & Investments Commission

Abstract:

The Australian Securities Investment Commission (ASIC) has commenced Federal Court civil proceedings against Wiluna Mining Corporation (Wiluna) and its former director and chief commercial officer for breach of continuous disclosure obligations and directors duties.

The regulator claims Wiluna failed to accurately state the sum of capital raised via a rights issue in a market announcement to the Australian Securities Exchange, and that former director Milan Jerkovic breached his directors duties by failing to ensure this obligation was met. Chief commercial officer James Malone is alleged to have failed to take reasonable steps to ensure statements to the ASX were not false or misleading.

Wiluna made ASX announcements in May 2022 that it intended to undertake an additional capital raising and released a prospectus for the capital raising offer. The company had been advised by an external consultant that if there were any delays in the proposed capital raising or its success was uncertain, then it should consider appointing a voluntary administrator. Wiluna’s prospectus allowed for three methods to subscribe for shares, including a shortfall offer...