PERTH (miningweekly.com) – ASX-listed KBL Mining’s debt holder Capri Trading has called for the immediate repayment of all monies owed to the company, including a A$12.6-million debt, alleging technical events of default.
Capri Trading regained A$12.6-million in KBL debt from ASX-listed Kidman Resources in January this year, which was secured against all KBL’s assets, including its operating Mineral Hill base metals mine and its Sorby Hills lead/silver deposit, in Western Australia.
Shortly after, Capri Trading issued KBL with an events of default notice under the general security agreement, which preceded the loan, claiming that KBL had withheld relevant information from its shareholders regarding the Capri-Kidman November sales agreement.
The debtor appointed investigators into the matter.
KBL said on Friday that Capri had confirmed that it would not exercise any right to appoint a receiver or to take possession of any collateral under the security documents pending the outcome of a court action taken by KBL as to the amount it was liable to pay on March 16.
The case would be heard by the New South Wales Supreme Court on March 10.
KBL maintained that the allegations of default were unfounded, and said that it would "vigorously" defend against any purported enforcement of the security against the company.