There is no smoking gun because it's unlikely anything fraudulent has occurred.
I can see some pretty substantial defamation actions after this episode.
Junior companies are always under pressure to maintain their tenement holdings. Under the mining act, many categories of tenure have expiry dates and can be difficult to extend. It is not uncommon in WA for people close to a company to arrange a "friendly" to secure the asset for the company's benefit.
At the worst someone may allege a related party issue if there was proximity, however if not even a peppercorn has changed hands and the intent of the parties was to benefit the company, the it's just lousy corporate governance - not the fraud that some people would seem to be alleging.
EK may have been frustrating to watch as an MD but he is no crook. At least this is his main focus and he is not distracted by myriad other board seats on under performing ASX companies. Be careful what you wish for with new board nominees.
EAR Price at posting:
9.5¢ Sentiment: None Disclosure: Held
