Cascade was at risk to never obtain a mining license for Mt...

Cascade was at risk to never obtain a mining license for Mt Penny and so become virtually worthless even before this whole scandal because of environmental issues (for details visit http://bvpa.org.au/ ). That alone sufficed to not getting shareholder approval if they actually had dared to proceed with the takeover.
I know that substantial WEC shareholders made their votes for the transaction conditional on the new WEC shares for Cascade shareholders being put under escrow until the mining license would have been granted so the transaction could have been reversed in case Mt Penny hadn't become mineable.
My feeling is that the escrow and the resulting duty of public disclosure of Cascade shareholders (potentially revealing the natural persons behind) was what actually stopped the takeover and not solely the questions of the honourable Mr. Cubbin.