PERTH (miningweekly.com) – Dual-listed Intrepid Mines has vowed to appeal a decision handed down by the South Jakarta District Court, which ruled that the Tujuh Bukit joint venture (JV) was void, and handing a 70% interest in the project to IndoAust Mining and Paul Michael Willis.
Willis and IndoAust Mining brought the legal action against ASX- and TSX-listed Intrepid Mines in December last year, and sued the company's wholly owned subsidiary, Emperor Mines, two company executives Brad Gordon and Vanessa Chidrawiand, the company's Indonesian JV partners, PT Indo Multi Niaga (PT IMN), Andeas Reza Nazaruddin and Maya Miranda Ambrasari.
The legal action related to the execution of a termination and settlement agreement between Nazaruddin, Ambarsari, IndoAust and Willis, and a deed of termination and release between IndoAust and Willis.
Intrepid said on Tuesday that the court recognised the plaintiffs’ 70% economic interest in the Tujuh Bukit project, which resulted in the subsequent agreements between PT IMN and Emperor being declared void. This included the establishment of the Tujuh Bukit JV.
Compensation for material damages of $3.7-million was also awarded in respect of alleged expenditure incurred at the Tujuh Bukit project, as well as $10-million for intangible harm.
The defendants’ counter claims were also dismissed.
“We firmly believe that the expert testimony and evidence placed before the court warrants further consideration by the High Court of Jakarta. I remain confident that the group for appeal and reversal of the judgment in favour of Intrepid shareholders is very strong,” said Intrepid CEO Scott Lowe.
He noted that the company was proceeding with its arbitration proceedings against PT IMN, Nazaruddin and Ambrasari for its entitlement to the Tujuh Bukit project.
Intrepid was effectively locked out of the $5-billion project after the controllers of the PT IMN JV company transferred the ownership of Intrepid's 80% shareholding to another vehicle, PT Bumi Sukses Indo (BSI).
After the leases were transferred, the shareholding had changed such that PT IMN was no longer a shareholder in BSI. Intrepid said Indonesian legislation provided that mining leases were not transferable, with an exception for transfers to majority-held subsidiaries.