Miramar Resources Clarifies Chairman’s Court Proceedings Amid Trading Halt
Miramar Resources has responded to media reports about court proceedings involving its Executive Chairman Allan Kelly, clarifying the company is not involved and requesting the ASX lift the trading halt.
- Trading halt imposed by ASX due to media reports on Allan Kelly
- Court proceedings involve Allan Kelly personally, not Miramar Resources
- Kelly found guilty of criminal and civil contempt in September 2024
- No penalties imposed yet; Kelly seeks to purge contempt charges
- Miramar confirms Kelly intends to remain as Executive Chairman
Background to the Trading Halt
On 28 January 2025, the Australian Securities Exchange (ASX) paused trading in Miramar Resources Limited (ASX: M2R) shares following media reports that surfaced regarding legal proceedings involving the company’s Executive Chairman, Allan Kelly. The halt was intended to allow the company to clarify the situation and provide investors with accurate information.
Clarifying the Legal Proceedings
Miramar Resources issued a statement confirming that the court proceedings referenced in the media do not involve the company itself. Instead, the legal matters pertain solely to Mr Kelly in his personal capacity. These proceedings stem from a civil case initiated by Mr Kelly against an individual named John Hilton in December 2020.
In September 2024, Mr Kelly was found guilty of both criminal and civil contempt of court related to breaches of court orders during this ongoing litigation. However, no penalties have yet been imposed, as Mr Kelly has filed an application to purge these contempt charges. The company emphasized that these developments are separate from Miramar’s operations and governance.
Implications for Miramar Resources
Despite the legal challenges facing its Executive Chairman, Miramar Resources has confirmed that Mr Kelly intends to continue in his role as a Director and Executive Chairman. The Board has expressed confidence in his ongoing leadership, signaling stability amid the uncertainty.
The company has formally requested the ASX to lift the trading halt, aiming to restore normal market activity and reassure shareholders. This move suggests Miramar is keen to manage any reputational risk and maintain investor confidence by providing transparency.
Looking Ahead
While the court proceedings remain unresolved, Miramar Resources appears focused on separating the personal legal matters of its Chairman from the company’s business. Investors will be watching closely for any further developments, particularly regarding the outcome of Mr Kelly’s application to purge the contempt charges and any potential impact on corporate governance.
Bottom Line?
Miramar’s swift clarification and request to lift the trading halt aim to steady investor nerves, but the unfolding legal saga remains a watchpoint.
Questions in the middle?
- What impact might the ongoing court proceedings have on Miramar’s leadership stability?
- Could the legal issues surrounding Allan Kelly affect Miramar’s market valuation or access to capital?
- How will the Board manage potential reputational risks if further legal penalties are imposed?
