If you are a mining company in the early stages of project
evaluation, and planning to release an announcement relating to
scoping studies, production targets or associated information
(NPVs, Capex, Opex), now may be a good time to pause. The ASX
Listing Rules are currently in a transitional phase which requires
very careful consideration before releasing any announcements.
The new regime consists of JORC 2012, the new Chapter 5 of the
ASX Listing Rules and the new ASX Guidance Note 31 (New
Regime). It is possible to be subject to the New Regime
prior to the formal commencement date of 1 December 2013 simply by
making an announcement that adopts JORC 2012 and the associated
Table 1 disclosure.
The New Regime requires careful consideration as the rules
relating to disclosure for mining companies have now become very
prescriptive. If you get it wrong, the company may be required to
issue a retraction statement.
A retraction statement? A retraction statement is an ASX
announcement where a company attempts to "revoke"
(usually due to ASIC's intervention) a previous announcement
because that announcement which ASIC may judge to be misleading or
deceptive because in ASIC's view it was not made with a
"reasonable basis" (ASIC RG 170).
Issuing a retraction statement is not without legal risk. We
recommend you only issue a retraction statement once the legal
risks have been fully considered.
We strongly suggest that during the current transition period
you consult with us or your corporate legal advisor before
releasing exploration or production results or targets which relate
to scoping studies, exploration results or production statements
(particularly those involving an inferred resource) and certainly
before issuing a retraction statement. We have a more detailed
briefing for clients available on request.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This part will cover the legal position in relation to promotional materials and misleading and deceptive conduct.
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