The British Columbia Securities Commission (BCSC) issued a notice of hearing on Wednesday alleging that William Malone, the founder of private mining company, breached a settlement agreement he entered with the commission back in 2009 that prohibits him from engaging in investor relations activities and being a director or officer of any issuer.
These allegations have not been proven.
Back in 2009, the BCSC settled with Malone after he admitted, along with partner, Nelson Riis, that a company they managed made unreasonable financial projections and misleading claims about its business prospects. As a result, Malone was prohibited from acting as a director or officer of any issuer for three years.
Malone contravened that settlement, the BCSC alleges, by acting as a de facto director of Lion King Resources Inc. by signing cheques for the firm, commissioning a technical report on behalf of the company, and participating in negotiations on LKR’s behalf.
The commission also alleges Malone solicited at least one investor to purchase LKR securities in July 2010.
LKR is a private B.C. company that was in the business of promoting and developing an iron ore property in Chile.
BCSC staff will apply to set dates for a hearing into the allegations on Nov. 10.