02/409 ASIC obtains orders restraining dealings in Oretek shares

Wednesday 13 November 2002


The Australian Securities and Investments Commission (ASIC) has successfully applied to the Supreme Court of Western Australia for injunctions against Oretek Ltd and its directors, Mr William Harold Jay, Mr John Richard George Andrews, Mr Robert Samuel Allen and Mr Ivo Sulenta.

The injunctions restrain the company and its directors from offering shares in Oretek, processing share transfers, and selling its shareholding in related company, Rand Mining NL.

Oretek, based in Albury, New South Wales, provides environmental solutions to the mining and industrial manufacturing industries, with a particular focus on remediating degraded soils and waterways, and preventing copper cyanide from being discharged into tailings dams. 

The proceedings were brought following an ASIC investigation into Oretek.

ASIC alleges that during the period April 2000 to November 2002, Oretek breached the fundraising provisions of the Corporations Law of Western Australia, and the Corporations Act 2001, by issuing and onselling shares in Oretek, and processing transfer applications, without providing a disclosure document to investors, or lodging a disclosure document with ASIC.

ASIC has applied for permanent orders that any issue or transfer of shares in contravention of the fundraising provisions of the above legislation can be set aside at the election of the investor, and the purchase price paid for the Oretek shares can be refunded. 

The matter has been adjourned until 16 December 2002 for further orders to be sought by ASIC.

‘Public companies must make complete and accurate disclosure to the market to ensure investors can make an informed decision about the prospects of an investment opportunity’, said ASIC Director of Enforcement, Mr Jamie Orchard.