Tuesday, 21 February 2012

Murchison Metals, Chameleon Mining file consent orders for $25m settlement

Murchison Metals (ASX: MMX) and Chameleon Mining (ASX: CHM) have filed consent orders for the settlement of a A$25 million payout to Chameleon by Murchison.

The settlement of the Chameleon litigation was a condition precedent, imposed by Mitsubishi Development, to the sale of Murchison’s interest in Crosslands and the Oakajee Port and Rail infrastructure projects for $325 million.

Both companies were expecting a decision yesterday by the Australian Federal Court on its appeal proceedings associated with the litigation commenced by Chameleon Mining against Murchison, Crosslands Resources and other parties.

Murchison previously announced the litigation has been settled and as a result the court’s decision has no commercial impact on Murchison or Crosslands.

The Federal Court handed down its decision dismissing Phillip Grimaldi’s appeal on all grounds, awarding Chameleon costs in the proceedings.

The court has also upheld the findings against Grimaldi that he was liable to account for profits obtained by him and for 10 million shares and 12 million options in Murchison.

The court ruled that the value of the 22 million shares would be assessed at either $1.52 or the value of the shares when actually sold.

Chameleon said it plans to pursue Grimaldi for an account of the profits the company is entitled to, and has been preparing documentation to assist in the inquiry.

The company believes it can establish in excess of $50 million worth of sales in the account.

The settlement with Murchison does not affect Chameleon’s ability to continue with legal action against Grimaldi.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/25607/murchison-metals-chameleon-mining-file-consent-orders-for-25m-settlement--25607.html

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