10 Mar 2017

Stop order placed on miner interested in Solomons' bauxite

9:06 am on 10 March 2017

An interim stop order has been issued against an Australian miner interested in bauxite deposits in the Solomon Islands.

The Australian Securities and Investments Commission's order against Axiom Mining's company prospectus (01-03-2017) and supplementary prospectus (06-03-2017) came into effect when the market closed on Wednesday.

While the interim order remains in place all offers and invitation under the disclosure documents are suspended and no shares or options will be issued in connection with them.

A statement from the company advises that a new timetable for capital raising will be advised once the issues are resolved.

It is unclear what these "issues" are exactly but according to the Australian Securities and Investments Commission, a stop order is an administrative mechanism that allows the authority to prevent offers being made under a disclosure document where they believe any of the following situations exist:

1) the disclosure document contains a misleading or deceptive statement.

2) the disclosure document contains an omission of information required to be provided under the legislation, or

3) a new circumstance has arisen since the disclosure document was lodged.

To use a stop order, the Commission must also believe that the situation is materially adverse from the point of view of the investor.