Chameleon Mining is hoping to emerge from receivership, expressing confidence it can settle its debts with Singapore-based International Litigation Partners following a Supreme Court ruling.
Chameleon Mining is hoping to emerge from receivership, expressing confidence it can settle its debts with Singapore-based International Litigation Partners following a Supreme Court ruling.
Last month ILP appointed receivers to Chameleon claiming the explorer had breached the terms of a $20 million fixed and floating charge secured by ILP when Chameleon entered into a deal with Tony Sage's Cape Lambert Resources.
Yesterday the New South Wales Supreme Court ruled that ILP had no entitlement to the Funding Fee it was claiming.
However, the court ruled ILP was entitled to payment of an Early Termination Fee, less any sums previously paid by Chameleon.
The Court also ruled that the injunction restraining the receiver from exercising any right or power was to be restated and will be in effect until Chameleon pays the Early Termination Fee.
In a statement to the Australian Securities Exchange, Chameleon said, "The only issue currently preventing CHM from paying the Early Termination Fee is ILP's delay in providing a full account of payments made and received by it."
"CHM is prepared to pay the amount due to ILP immediately."
Chameleon estimated the amount to be $8.3 million.
"The Board of Chameleon has determined that it will pay the Early Termination Fee to ILP and discharge the security as soon as possible in order to remove the receiver in the best interests of its shareholders," the statement said.
See company statement below:
Chameleon Mining NL (CHM) today announced it has been successful in its NSW
Supreme Court proceedings against International Litigation Partners Pte Limited ('ILP").
The court yesterday made orders to the following effect:
- ILP has no entitlement to the Funding Fee it was claiming;
- ILP is entitled to payment of an Early Termination Fee, less any sums previously paid
to it by CHM;
- the injunction restraining the receiver from exercising any right or power has been restated and will be in effect until CHM pays the Early Termination Fee.
The only issue currently preventing CHM from paying the Early Termination Fee is ILP's delay in providing a full account of payments made and received by it. CHM is prepared to pay the amount due to ILP immediately. Based on CHM's records, after taking into account what CHM has already paid to ILP and other monies reimbursed to ILP, the final amount payable to ILP is $8,339.765.07.
The Board of Chameleon has determined that it will pay the Early Termination Fee to ILP and discharge the security as soon as possible in order to remove the receiver in the best interests of its shareholders.
ILP has indicated that it will be appealing the decision, as a consequence of which CHM will also raise the issue of ILP being required to hold a financial services license.
Accordingly, the orders set out above have been stayed for a period of 14 days.
The result is a positive outcome for CHM. The Board is confident that the Court of Appeal will make a favourable finding for CHM.
CHM will continue to endeavour to finalise the position with ILP as expediently as possible in the best interests of its shareholders.
