Struggling gold miner Navigator Resources has been dealt another blow, this time from the corporate regulator.
The owner of the trouble-plagued Bronzewing gold project has been forced to pay a $33,000 fine after the Australian Securities and Investment Commission found it had provided the market with misleading information on an underwriting agreement associated with a $31.7 million rights issue announced in June last year.
Navigator was forced to reprice the rights issue lower after its shares went into freefall, despite the raising being partially underwritten by Patersons.
The company said it had agreed to pay the fine without admission of liability.
Navigator said it did not agree with ASIC's allegation but decided to pay the fine to conclude ASIC's investigation and avoid additional legal costs which it said were likely to far exceed the value of the fine.
"The board is of the view that management time and the company's resources can be more effectively utilised by focusing on the operational performance of the Bronzewing gold project," the company said.
"Compliance with the infringement notice does not constitute an admission of guilt or liability, nor a finding of any contravention of law."
Last week, Navigator managing director David Hatch fell on his sword, resigning from the company and chairman Allan Trench warned shareholders that the miner "would not exist" if it could not cut costs.
Navigator bought the historic Bronzewing gold mine, 80km north-east of Leinster, from receivers for View Resources in 2009 but has struggled to turn a profit ever since despite a strong gold price.Navigator shares last changed hands for 0.8 cents.
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