Former Continental Coal director sentenced over breach

·1-min read
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A former director of a Perth-based mining and exploration company has been sentenced to eight months in prison for misusing bridging finance money, the securities regulator says.

The Australian Securities and Investments Commission said on Tuesday that former Continental Coal director Ashley Paul D'Sylva would be released immediately upon entering into a recognisance release order for $5,000 and was of good behaviour for 18 months.

ASIC said D'Sylva arranged for Continental Coal to repay $915,000 to Celtic Capital in 2014, contrary to a debt restructuring deed that Continental had entered into.

The company entered liquidation in 2016.

D'Sylva pleaded guilty to recklessly failing to exercise his powers for a proper purpose while he was a director of the former ASX-listed company, ASIC said.

The regulator said the matter was prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral by ASIC.

Two other former Continental Coal executives have also been charged in connection with the matter.

Peter Landau has pleaded guilty and will be sentenced on June 20.

Company secretary Jane Rosemary Flegg has pleaded not guilty and is scheduled for trial in early 2024.