The charge related to a controversial phoney media release allegedly distributed by Moylan and anti-coal group Front Line Action on Coal on January 7, which said the ANZ would be withdrawing $A1.2 billion in credit for the Maules Creek coal project in New South Wales on ethical grounds.

The fake announcement was reported by several media outlets, triggering a $314 million plunge in Whitehaven’s share price and confusion among its shareholders before a trading halt was called.

Moylan, 24, of Newcastle, appeared in Downing Centre Local Court today charged with one offence of contravening section 1041E of the Corporations Act 2001, which relates to false or misleading statements.

He was not required to enter a plea and the matter was stood over to September 3 for mention.

Moylan was granted unconditional bail.

The maximum penalty is 10 years imprisonment or a fine of up to $765,000, or both.

The federal government formally approved the $767 million Maules Creek development earlier this month, though it emerged last week that the project still faces a court challenge by environmental group Northern Inland Council for the Environment.

Despite the action, Whitehaven will proceed with construction and requested the case be expedited.

Whitehaven shares last traded 1.8% higher at $2.23