Former director Mr Avrohom Mordechai Kimelman of St Kilda East appeared on 23 June 2020 in the Magistrates’ Court of Victoria at Melbourne charged with insider trading offences. Mr Kimelman has been charged with four counts of procuring the acquisition of shares in Quantum Resources Ltd (Quantum) while in possession of inside information, and four counts of applying for shares in Quantum while in possession of inside information. 

Mr Kimelman was a director and chief executive officer of Quantum at the time he applied for and procured the acquisition of 3,957,150 Quantum shares between 13 April 2016 and 5 May 2016.

ASIC alleges that at that time Mr Kimelman was in possession of inside information concerning the intention by Quantum (now Nova Minerals Limited) to acquire Manitoba Minerals Pty Ltd, which had agreed to acquire an interest in a lithium resource in Canada.

At the time of the alleged offences, each of the charges of insider trading contrary to section 1043A of the Corporations Act 2001 carried a maximum penalty of 10 years’ imprisonment.

In March 2019 the maximum penalty for insider trading was increased to 15 years imprisonment.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

The matter has been adjourned to a committal mention hearing in the Melbourne Magistrates Court on 4 August 2020.

Editor's note:

On 4 August 2020, the matter was listed for a committal hearing on 7 June 2021.

Editor's note 2:

A committal hearing has been listed for 5 July 2021.