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Padbury execs penalised for market deceit

AAP logoAAP 19/08/2016

Padbury Mining has appointed a new managing director and chairman after their predecessors were banned from managing a corporation for three years for misleading and deceiving the market over a $6 billion funding deal.

The junior explorer told the Australian Securities Exchange on April 11, 2014 that it had secured the funds to build a port and rail network at Oakajee in WA's Mid West region, but didn't disclose the deal was dependent on satisfying conditions it was not in a position to meet.

The deal was terminated some three weeks later.

The federal court has found managing director Gary Wayne Stokes and chairman Terence Martin Quinn failed to discharge their duties with the care and diligence that a reasonable person would exercise in their positions.

As well as being banned from managing a corporation for three years, they must each pay a $25,000 penalty.

Padbury Mining said in a statement after the court orders were handed down on Friday that Edward Saunders had replaced Quinn while Michael Keemink had taken over from Stokes.

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