Padbury Mining shareholders reveal losses as they look to mount...

Padbury Mining shareholders reveal losses as they look to mount class action

Updated Tue 17 Jun 2014, 1:06pm AEST


A boat docked at a deep water port at Oakajee Photo: An artist's impression of a boat docked at a deep water port at Oakajee. (OPR)


Map: Geraldton 6530
A group of shareholders mounting a class action against Padbury have revealed some of losses they claim are linked to the company's failed bid to develop a port project at Oakajee in Western Australia.

The junior minor has attracted criticism - and the eye of ASIC - following a series of announcements in April, in which it claimed to have secured $6.5 billion to develop the long-delayed Mid West port.

The Perth-based company later terminated the deal and revealed it did not have all the money required to execute the plan.

The move saw Padbury's share price plummet.

That prompted regulators to investigate Padbury's market announcements and share trading.

Padbury shareholder Wes Chapman said he lost a "substantial" sum of money through the ordeal but was not willing to disclose a figure.

He said other shareholders have come forward claiming losses of up to $300,000.

Mr Chapman is working with a number of shareholders to launch a class action, alleging that Padbury’s Oakajee announcements to the ASX lacked vital details, which misled the market.

"I think the market needs to be accountable for its mistakes and obviously that announcement should never have been released, never put on the market," he said.

Mr Chapman said he had been contacted by up to 80 people who are interested in being involved.

"At the end of the day it just comes down to an announcement and someone putting their name on that announcement, which happened to be Padbury Mining, so they need to be accountable for it," he said.

The group is pursuing legal action through Sydney-based ACA Lawyers.

Padbury Mining declined to comment.

ASIC confirmed its investigation into Padbury's disclosure and share trading was ongoing but was not able to say when an outcome would be reached.