Murchison Metals Limited insisted today it would not bow to any of the claims of junior explorer Chameleon Mining Ltd, which has instituted legal proceedings to try and win a share of Murchison's iron ore tenements.
Chameleon announced today - the same day Murchison announced a merger deal with Midwest Corporation Ltd - that it has "lodged the first tranche of security for costs with the Federal Court in the amount of $650,000".
A Murchison statement is pasted below:
MURCHISON RECONFIRMS CONFIDENCE ON DEFENCE OF CHAMELEON LITIGATION
Murchison Metals Limited ("Murchison") is aware that in recent weeks parties associated with Chameleon
and/or parties whose corporate objectives will be enhanced if the Murchison share price is weak have been
actively seeking to promote the proposition that the Chameleon claim represents a material risk for Murchison
shareholders.
Murchison confirms that it has continued to work with its lawyers (Freehills) on its defence to the claim by
Chameleon since the last public announcement by Murchison on this issue.
Since that announcement, Murchison's strongly held view that the Chameleon claim, so far as it constitutes a claim for an interest in the Jack Hills and Weld Range projects and/or Murchison's shares in Crosslands Resources Ltd is without merit, has been reinforced, and Murchison is therefore satisfied that the Chameleon claim should not result in any material value loss for Murchison shareholders.
In particular, Murchison can confirm that the existence of the Chameleon claim has not, and is not expected to,
have any impact on the ability of Oakajee Port & Rail to tender for and develop the required port and rail infrastructure in the mid-west region.
Murchison has reviewed the evidence submitted by Chameleon in support of its claim against Murchison, including an unsworn outline of the evidence that Chameleon anticipates will be given by its former director, Mr Landan Roberts.
"Murchison remains of the view that that there is no sustainable basis for the Chameleon claim so far as it constitutes a claim for an interest in the Jack Hills and Weld Range projects and/or Murchison's shares in Crosslands," said Mr Kopejtka.
"We will not be coerced into making concessions on the Chameleon litigation by the risk of negative media coverage and market spoil, including by our corporate competitors or their representatives."
