A former mining company chief executive is set to fight multiple counts of insider trading offences after he allegedly tried to acquire almost 4 million shares in the business he ran.

Avrohom Mordechai Kimelman, 39, was charged in June with four counts of procuring the acquisition of shares and four counts of applying for shares in Quantum, the gold exploration company he ran, between April and May 2016.

In a brief hearing on Tuesday, Magistrate Johanna Metcalf granted the defence permission to call six witnesses to cross-examine in a committal hearing in June next year, signalling that the former CEO, who has yet to enter a plea, is set to fight the charges.

The Australian Securities and Investments Commission alleges that while Mr Kimelman was a director and chief executive officer at Quantum, he applied for and procured the acquisition of 3,957,150 Quantum shares.

Mr Kimelman has since resigned both as CEO and as a director of Quantum, which now trades as Nova Minerals, but has remained employed as a general manager and continues to advise the company.

The financial watchdog also alleges that the St Kilda East man was in possession of inside information indicating Quantum’s intention to acquire Canadian miner Manitoba Minerals after they had agreed to acquire an interest in a lithium resource in North America.

Ms Metcalf granted the defence permission to call six witnesses to cross-examine, with some to appear from Perth.

The matter before the Melbourne Magistrates Court is being prosecuted by the Commonwealth Director of Public Prosecutions and Mr Kimelman faces a maximum of 10 years in prison per charge if convicted.

Nova Minerals Limited specialises in mining gold ore. They declined to comment.

Insider trading offences involve the buying or selling of the stock or other securities of a public company based on relevant, private information about the company.

They are illegal because it’s seen as unfair to other investors who do not have access to the information and because the person in possession of the private information could make a larger profit on an investment.

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