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post Posted: Aug 7 2018, 12:43 PM
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Gold Mountain Limited has been fined $33,000 by the Australian Securities and Investments Commission because its calculations of $337 million in future earnings from gold mining was not compliant with disclosure standards for mining companies, as they were "not based on the work of a suitably qualified and experienced person."

It has also been prohibited from issuing a reduced-content prospectus until July 2019.

Mining entities are subject to additional reporting and disclosure requirements set by the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves Code 2012 (known as the JORC Code), ASIC notes.

On July 27 Gold Mountain's publicist (and shareholder), John Rawicki, sent shareholders a letter, which also found its way to the Hot Copper website. The letter implied gold in a target zone was capable of eventual economic extraction and there was a reasonable basis for calculating $337 million in future revenues.

The company did not retract these statements until August 7.

Full ASIC statement here.

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