Navigator Resources complies with infringement notice for alleged continuous disclosure breach
The Australian Securities and Investments Commission (ASIC) has announced that Navigator Resources Limited has complied with an infringement notice issued by ASIC under s 1317DAC of the Corporations Act 2001 by paying a penalty of $33,000.
The conduct giving rise to the issue of the infringement notice related to an announcement to ASX by Navigator on 20 June 2011 about a renounceable rights issue.
ASIC alleged that statements in the Announcement were misleading because the Announcement implied that Patersons Securities Limited was legally bound to underwrite Navigator's rights issue, subject only to the usual terms contained in underwriting agreements, which was not the case. Patersons' appointment as underwriter would only take effect upon execution of a formal underwriting agreement which had not yet been entered into. Further, Patersons' appointment as underwriter was conditional upon a satisfactory outcome of a due diligence process which had not yet been completed.
Navigator paid the penalty on 15 June 2012 in compliance with the infringement notice. Compliance with the notice is not an admission of guilt or liability. Navigator is not regarded as having contravened s 674(2) of the Corporations Act.