Background
4 The respondent is a geologist. In 1993 a company called Cambridge Gulf Exploration NL ("the Company") was exploring the seabed in the waters of Joseph Bonaparte Gulf in the north-west of this State with a view to finding diamonds. In April 1993 the respondent was engaged by the Company to prepare independent reports for inclusion in a prospectus that the Company intended to issue with a view to it being listed on the Australian Stock Exchange ("ASX"). The Company was in fact listed in July 1993.
5 In October 1993 the Company made an announcement to the ASX that a purpose-built marine alluvial diamond sampling ship, "Lady S", had arrived on location and had commenced bulk sampling. The sampling programme encountered fairly severe difficulties. Nonetheless, in November 1993 the Company announced that gem quality diamonds and precious metals were being recovered. In the time-honoured fashion of mineral exploration in this country, rumours about the Company's results began to fly about the marketplace. The ASX lodged a query with the Company, which responded by saying that exploration results would be disclosed in the quarterly report for the period ending 31 December 1993. The ASX took no further action and the share price continued to rise. Between 1 December 1993 and 14 December 1993 the share price increased from $0.88 to $2.05. On the latter date the Company, at the insistence of the ASX, sought a voluntary suspension from quotation pending the delivery of a statement concerning the exploration results.
(Page 5)
6 The respondent was asked by the Company to assist it to prepare the report. The respondent was briefed by various of the Company's officers and employees and, on 15 December 1993, he prepared a draft report in longhand. It was then checked and typed before being signed. On 16 December 1993 the Company issued the document, entitled "Exploration Results for [the Company]". I will refer to this document as "the Report". The ASX requisitioned further information, which was provided. On 22 December 1993 the suspension was lifted and the share price continued to rise. It peaked at a high of $4.10 on 24 December 1993.
BON
bonaparte diamond mines nl
Background4 The respondent is a geologist. In 1993 a company...
Add to My Watchlist
What is My Watchlist?