Coal Fe Resources Ltd (now Aus Asia Minerals Ltd) (Coal Fe) has paid a $33,000 penalty after ASIC served an infringement notice for the company's alleged failure to comply with continuous disclosure obligations.

The conduct relates to an independent geological consulting firm's valuation report, that was attached to a Notice of Meeting and lodged by Coal Fe with ASIC on 15 August 2014.

ASIC alleged that by 18 July 2014, Coal Fe was aware this report valued the Abadi Coal Project at approximately US$300,000. Coal Fe's Interim Financial Report for the half-year ended 31 December 2013 placed a value of $1,897,584 on the Abadi Coal Project. ASIC alleged Coal Fe should have revised the valuation earlier.

Coal Fe paid the penalty on 30 June 2015 in compliance with the infringement notice.

‘Continuous disclosure is crucial to market integrity and to making sure investors are confident and informed,' ASIC Commissioner John Price said.

'If we think companies are falling short of the mark, we will take action’

Details of the infringement notice will be published in the ASIC Gazette.

Background

The Corporations Act provides that compliance with the infringement notice is not an admission of guilt or liability. Coal Fe is not, by reason of its compliance with the infringement notice, regarded as having contravened s674(2) of the Act.