Darryl Mapleson: Beacon Minerals geologist learns fate over North Coolgardie gold project insider trading

A geologist has been spared an immediate jail term for buying shares in a WA gold miner he worked for, privy to price-sensitive information that had not yet been disclosed to the sharemarket. Darryl Mapleson wrote reports on exploration results for the Jaurdi project in North Coolgardie in 2009 then recommended it to Beacon Minerals in late 2016. Beacon inked an option agreement to buy the tenements the next month, following a 110-day due diligence process, which was detailed in a statement to the Australian Securities Exchange. Mapleson’s company BM Geological Services was then engaged to provide geological services for another drilling program at the project. And later that month - armed with positive results showing gold in areas not previously drilled - he bought $52,000 worth of shares in Beacon Minerals. The high volume of trading didn’t go unnoticed by the ASX, which issued the company with what is colloquially known as a speeding ticket, asking if there was any information that had not been released that could explain the purchases. Beacon Minerals went into a trading halt, then issued the drill results days later. Mapleson’s sentencing in the Supreme Court of WA this week was told he had unrealised — in other words, not cashed out — gains of about $30,000 from the share purchases. The 61-year-old said he had been planning to buy shares in the company but just didn’t have the time, busy either working or commuting. “I always intended to buy BCN shares,” Mapleson said. “In early 2017, I was never in a position to make the necessary calls during trading hours ... or I was just totally focused on my role in other mines,” he said. “I accept that I was privy to the information about the expanding project that other people were not. “This gave me an unfair advantage, even though that’s not what motivated my decision-making.” Justice Michael Gething said insider trading was not a victimless crime. “Rather, there are at least two victims: the seller or sellers of stock at the lower price and the public whose confidence in the integrity of the market must be diminished,” he said. But it was “a gross aberration” in an otherwise law-abiding life, Justice Gething said, fining Mapleson $60,000. He also handed him a term of imprisonment of 12 months but released him on a recognisance release order lasting two years, during which he will have to be of good behaviour or serve the jail term. Mining commenced at Jaurdi in 2019.