Around the same time, X-Mining issued a prospectus to raise capital for a new li...
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Around the same time, X-Mining issued a prospectus to raise
capital for a new lithium project in Western Australia. The prospectus claimed
that the company had already secured all necessary environmental approvals,
suggesting the project was ready to proceed. In reality, the approvals were
still pending and subject to significant delays due to ongoing environmental
assessments and community objections—facts that were not disclosed to potential
investors.
Revengers Ltd. (a mid-sized superannuation fund) relying on this information, invested $10 million. When the truth emerged and project delays were confirmed, X-Mining’s share price fell sharply, resulting in significant investor losses directly linked to the misleading statement.
Required:Advise whether X-Mining is “defective” under the Corporations Act in relation to the prospectus.
(3 marks)
REQUIREMENT: To get full marks (out of 3), you need to cite ONE relevant case law from the following:
- Hickman v Kent or Romney Marsh Sheep Breeders' Association
- Nibaldi v RM Fitzroy and Associates
- R v Firns
- Panorama Developments v Fidelis Furnishing
- Fraser v NRMA Holding Ltd.
YOU DO NOT NEED TO WRITE YOUR APPLICATION USING THE IRAC FORMAT!!
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