WA mining company faces civil action over breach of disclosure rules and governance duties

ASIC has launched civil action against a WA gold mining company and two former executives over alleged failures in market disclosure and director duties linked to a misleading capital raising.

By Ro Elvinia

The regulator alleges that Wiluna Mining Corporation misled investors by announcing a $57.3 million capital raise in June 2022, while failing to disclose that $7 million of the funds were never received. The company entered voluntary administration in July 2022, just over a month after the announcement.​

ASIC claims that former chair Milan Jerkovic breached his director duties by not accurately reporting the capital raised, and that former chief commercial officer James Malone failed to ensure the company's statements to the Australian Securities Exchange (ASX) were not false or misleading.​

Joseph Longo, ASIC Chair, emphasised the seriousness of the alleged misconduct, stating that such actions undermine market integrity and investor confidence. He noted that the lack of transparency and subsequent corporate failure could deter investor participation in capital raisings, impacting the broader Australian economy.​

Wiluna Mining, formerly known as Blackham Resources Limited, operated the Wiluna gold mine in Western Australia. The company was delisted from the ASX in April 2024 after failing to submit a required half-year report.​

ASIC is seeking declarations of contravention against Wiluna Mining, as well as declarations and pecuniary penalties against Jerkovic and Malone. The case underscores the importance of accurate corporate disclosures and the responsibilities of company directors and officers.

For non-resident business operators and international companies expanding into Australia, this case highlights the need for expert guidance. Engaging professionals like ABN Australia, with strong local expertise in ASIC compliance, tax and accounting, is essential to stay compliant and avoid regulatory pitfalls.