Complaint to ASIC over WA uranium miner potentially misleading shareholders

2017-03-14

Senator Scott Ludlam, Co-Deputy Leader of the Australian Greens, lodged a complaint with the Australian Securities and Investments Commission today querying whether WA uranium prospector Vimy Resources had made misleading statements to the Australian Securities Exchange.

“Vimy claimed to the ASX1 that they have a final approval to mine uranium at Mulga Rock, and that they have ‘commenced work’2 at the Mulga Rock site.  The company has received no such final approval, they have not been granted permission to begin construction at Mulga Rock and the company itself is yet to make a final investment decision on the proposed mine,” Senator Ludlam said.

“Only initial conditional environmental approvals from specific state and federal bodies have been granted to Vimy Resources thus far, they are yet to achieve final approval including; works approvals from the Department of Mines, clearing permits from the Department of Environment, licenses from the Department of Water and federal export licenses from ASNO, as well as the completion and approval of a suite of management plans.”

“What the company has failed to tell its shareholders is that mining giant Cameco has written down the entire value of the WA Kintyre uranium project - from $238 million to $0 - a move that highlights how dire the economic situation is for the troubled uranium sector.

“Vimy has also failed to tell their shareholders that with the election of WA Labor Government opposed to uranium mining the Mulga Rock project may not be able to proceed at all,” Senator Ludlam said.

1 http://clients3.weblink.com.au/pdf/VMY/01835937.pdf
2 http://clients3.weblink.com.au/pdf/VMY/01837854.pdf

Media Release Nuclear