Wollongong Coal has defended its decision not to tell the market immediately that it was under investigation by the New South Wales Resources Regulator. The company had been advised of the investigation in July but only confirmed this fact to the Australian Stock Exchange this month.
The investigation follows a complaint by environmental groups, alleging that Wollongong in not a “fit and proper person” to own a mining license.
In a letter to the ASX compliance office, the company said that it believed there was “no proper legal basis for such an investigation to be made and no reasonable prospect that there would be finding by the department that the directors of the company are not ‘fit and proper’”.
On this basis, the company believed that information of the investigation would not have a material effect on the price or value of its shares and that it would thus “not be proper to draw undue attention to such information”.
The company also noted that its share price since the investigation was made public have been trading at AUS$0.008 per share, a fact the company claims as supporting its position not to announce the investigation to the ASX.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/13092016/wollongong-defends-decision-not-to-announce-resource-regulator-probe-2016-2410/