Former Nova director charged with insider trading offences

Avi Kimelman has been charged with insider trading offences at the Magistrates Court of Victoria, following his resignation as a Nova Minerals company director last week.

Kimelman was charged with four counts of acquiring shares in Quantum Resources (now Nova Minerals) and four counts of applying for shares in Quantum while possessing inside information.

The Australian Securities & Investments Commission (ASIC) stated Kimelman was Quantum’s director and chief executive when he applied for and procured the acquisition of almost four million Quantum shares between April 13 2016 and May 5 2016.

ASIC also claimed that Kimelman had inside information regarding Quantum’s intention to purchase Manitoba Minerals at the time the shares were procured.

Each of the insider trading charges carried a maximum penalty of 10 years’ imprisonment at the time of the alleged offences, ASIC stated.

However, the maximum penalty for insider trading was lifted to 15 years’ imprisonment in March last year.

The matter has been adjourned to a committal mention hearing in the Melbourne Magistrates Court, which will take place on August 4.

Kimelman resigned from his position as Nova’s director last week for “personal reasons”, with the company stating he would remain involved as a consulting general manager and “will work closely with the board in all aspects of business development”.

Nova has since introduced David Hersham as non-executive chairman.

“The board would like to thank Mr Avi Kimelman for his valuable contributions during his tenure as Chairman of Nova,” Nova chief executive Christopher Gerteisen said in a statement addressing Kimelman’s resignation last week.

“We look forward to his continued contribution in his capacity as a consulting general manager as we work towards increasing tonnages outside the current resource area while we advance on our path to production at the Estelle gold camp.”

Nova publicly addressed Kimelman’s charges today, stating it was not ready to make any further comment.

“The charges are a personal matter and do not impact on the company or its operations,” Nova stated.

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