Short report on Rinehart-backed Vulcan secret for weeks

US-based shortseller J Capital and its co-founder will remain barred from sharing its scathing report on Rinehart-backed lithium explorer Vulcan Energy Resources, as the company’s lawyers push to keep parts of the lawsuit out of the media.

The ASX-listed explorer, which is being represented by high-profile lawyer Martin Bennett, launched legal action against J Capital Research and its co-founder Timothy Murray earlier this month over a report titled 'Vulcan: God of Empty Promises'.

In the report, Mr Murray alleged the company had been overly optimistic in the presentation of its zero carbon lithium mine in Germany and cast doubt whether its green lithium plan would ever come to fruition.

By the following week, Vulcan, together with managing director Francis Wedin, chair Gavin Rezos, chief operating officer Thorsten Weimann and executive director Horst Kreuter, had lodged an injunction application with the Federal Court to stop further publication of the report.

During an urgent hearing, Federal Court justice Katrina Banks-Smith granted a temporary order preventing Mr Murray and J Capital from disseminating, publishing or republishing the contents of the report.

That order was due to expire at 4pm this afternoon, but was extended until December 1 by Justice Craig Colvin at the request of Mr Bennett.

A push by the media for access to Vulcan’s application and statement of claim was opposed by Mr Bennett, however, who alleged the company had been subject to a “short and distort” campaign by the defendants.

He argued further publicity of the allegedly defamatory comments at the centre of the action would likely have a negative impact on the company and pushed for the statement to remain confidential.

Vulcan, which listed on the ASX as Koppar Resources in 2018, is based in Perth and has about 80 staff.

The company’s shares are up more than 80 per cent in the past six months, trading at $10.61 this afternoon.