The Waterberg Coal Company Limited (WCC) and 45.88% controlled entity Firestone Energy Limited (FSE) have both paid penalties in relation to continuous disclosure obligations. 

WCC and FSE have each paid $33,000 in penalties after ASIC served infringement notices on both companies in relation to their continuous disclosure obligations.

The conduct relates to Australian Securities Exchange (ASX) announcements made by FSE and WCC on 31 July 2014 in connection with their June 2014 Quarterly Activities report.  The announcements referred to a new loan agreement being entered between WCC and FSE of up to $3 million, and the extension of the term of an earlier loan for a similar amount.  FSE and WCC took 15 days to disclose this information to the market.

ASIC alleged that by 16 July 2014 both companies were aware that the board of WCC had resolved to enter and execute the new loan agreement and extend the earlier one.

WCC and FSE paid the penalties on 21 July 2015 in compliance with the infringement notices.

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

Background

The Corporations Actprovides that compliance with the infringement notice is not an admission of guilt or liability.  WCC and FSE are not regarded as having contravened s674(2) of the Act.

This matter was referred to ASIC by the ASX.