PERTH (miningweekly.com) – Gold junior Empire Resources will exercise its rights to recover some A$1-million owed by project partner Brimstone Resources after the Court of Appeal dismissed Brimstone’s application to have an earlier ruling overturned.
Brimstone, which holds a 40% interest in the Penny’s Find gold mine, in Western Australia, turned to the Appeals Court after the Supreme Court dismissed an injunction to prevent Empire from taking action under the mortgage and security documents over its interest in the joint venture and other properties, after Brimstone failed to make a A$1.02-million repayment to Empire.
The Court of Appeal on Tuesday dismissed the appeal, leaving Empire able to move on the debt.
“The latest court ruling reinforces the belief of the Empire board that the court applications by Brimstone, which has related party interest currently seeking to remove the entire Empire board of directors, have been nothing short of deliberately obstructive,’ said Empire MD David Sargeant.
“On all observations, Brimstone’s actions were designed to both delay its A$1-million-plus mine payment obligations and create smokescreens around the encumbent board.”
Empire will now exercise its rights under the mortgage and security documents to appoint a receiver to Brimstone’s interest in the Penny’s Find project and other means available to recover some A$1-million from Brimstone.