Update class action

Update for Class action.In relation to class actions by shareholders there may be a clear path in the cases against directors officers and contractors. For continuous disclosure, we are advised there maybe multiple serious breaches. Accessoral liability for directors and officers ( includes CFO Co Sec and other officers must bear the evidential burden in relation to whether they took action particularly if they had knowledge and never objected. ASIC may prosecute for up to $100,000 as well a criminal offence in relation to non continuous disclosure rules. In the case of TBA there may have been multiple breaches of this section undersigned by ASX listing rules 3.1 and Section 674(2) of the corporations act. Directors and officers who breach continuous disclosure act may also be subjected to an entitlement of a class action by shareholders. Directors and officers may also be liable for failing to update the market with information,which, knew at the time that the information was price sensitive or were wreckless or negligent with respect that the information was sensitive. Then comes the dam buster, misleading and deceptive conduct for purpose of s1041H of the corporations act as well as the trade practices act. There may be multiple occasions of these breaches that may have had a major impact on the outcome of a successful class action.Examples: 1. 10th May 2022. Announced “The company is now fully financed into Gold production from its Mt Freda Gold Mine in Q3 Cy2022. “ Actual: since the date of 10th May 2022 announced, not a single tonne of rock has been mined at Mt Freda Gold Mine. In addition to the statement of “ Now fully financed to Gold production, Tombola Gold directors have facilitated the raising of several million more dollars, as well, borrowed $500,000 from a TBA shareholder and entered into a loan arrangement with private individuals Company’s for $4.25m on a 79% pa interest rate resulting in $850,000 in interest to be paid in addition to the repayment of the loan within a 90 days period. TBA did not repay the loan and the company was was placed in administration and ultimately receivers appointed. 2. The directors announced 23th July they had entered into an agreement to purchase 3 mining leases from True North Copper Pty Ltd. A cash amount and 75,000,000 was to be paid for the acquisition of the tenements. The 75,000,000 shares were to have a value of $0.06c and approved by shareholders. Subsequently the share price of $0 06c was changed WITHOUT shareholders approval to “the share price in the day of issue.”On 16th September 2022 Tombola Gold directors announced : Tombola Increases Resource base by 72,000 ounces with the “Completion of the Acquisition”of the Gold Properties from True North Copper. 4th November: raised more cash via a SPP from shareholders who contributed their funds based on the 72,000 Gold ounce acquisition.12th April 2023. Announced the completion of the acquisition of 72,000 ounces Gold resource from True North Copper was Terminated.Terminated 7 months after completion? The above two events are probably only two of possibly multiple reaches of continuous disclosure and breaches of misleading and deceptive conduct, however, it will be up to a court to decide but doesn’t appear to be much wriggle room for directors.Then we enter into the arena of “ trading whilst insolvent” . It appears on the face of the quarterly financials that there may have been serious and intentional breaches of this rule. A full audit during litigation will determine whether this rule was breached at any time during the past 12 months.Then we come to other participants in the failure of Tombola Gold, to include others that may have been paid as contractors offering services that appear to have been grossly mismanaged and incompetent. Shareholders will be advised as to which company will be representing shareholders in any class action based on breaches that may provided financial comfort for those who participate. I can confirm that this action once started will be taken to it’s finality. An update of the legalRepresentatives for shareholders will be available in advised shortly.