AUS: ASIC aborts case but doesn't say "sorry."

The Australian Securities and Investments Commission (ASIC) has today discontinued proceedings against Melbourne-based Mining Projects Group Limited (formerly Yamarna Goldfields Limited) and its Executive Chairman, Mr Bryan Frost and Executive Director, Mr Richard Revelins for allegedly making misleading or deceptive statements to the market. On 11 June 2008, 13 June 2008 and 17 June 2008, Messrs Frost and Revelins filed lengthy and complex expert material from a geochemist, two geologists and a geophysicist. In light of this new evidence, ASIC has reconsidered its case as pleaded and decided that it is not in the public interest to continue any of its claims in the proceedings. The discontinuance is by consent on terms that each party bears its own costs of and incidental to the proceeding. ASIC issued proceedings in the Federal Court in Melbourne in January 2007 seeking declarations that the company engaged in misleading or deceptive conduct and that Mr Frost and Mr Revelins breached their duties as directors in relation to announcements the company made to the ASX on 15 August 2005 and 19 August 2005. It was also alleged that by trading in the shares of the company immediately following the release of the announcement on 15 August 2005, Mr Frost and Mr Revelins engaged in insider trading and misused information available to them by virtue of their positions as company directors. ASIC commenced its investigation following a referral from the ASX.

The nature of the order is such that it might be interpreted as saying "there was no smoke without fire, but we don't think we have a realistic chance of proving the case." And the fact that the case is withdrawn rather than dismissed might be regarded as implying that the directors considered that the case would be complicated, expensive and consuming to defend.