Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of prospector Axiom surged by nearly 16% on Thursday on news that the Solomon Island Court of Appeal had sided with the company.
Axiom told shareholders that the Court of Appeal had set aside an interim injunction instigated by Japanese giant Sumitomo Metal Mining to prevent Axiom from exploring for nickel.
Sumitomo served Axiom with an application seeking an interim injunction only one week after the ASX-listed company won a three-year court battle against the Japanese firm, allowing Axiom to exploit the Isabel nickel discovery on the Solomon Islands.
The basis of Sumitomo’s application was that it intended to appeal the September judgment over the Isabel nickel deposit, and wanted the ‘status quo’ to remain, pending the determination of the appeal.
Axiom said on Thursday that the Court of Appeal had made it clear that its decision was intended to prevent Sumitomo from applying for further injunctions against the junior company over its exploration rights on the Isabel nickel deposit, regardless of whether Sumitomo lodged an appeal.
Axiom CEO Ryan Mount said that the company would now restart exploration, adding that the events of the past week would not distract the company from its goal of establishing a direct shipping ore operation within 12 to 18 months.
“We look forward to the court hearing our claim on costs in coming weeks, as well the potential for a damages claim in the future,” Mount said.
Axiom shares were trading at a high of 2.4c a share on Thursday, up from a low of 2c a share.