PERTH (miningweekly.com) – The High Court of Sierra Leone has issued a court order preventing the liquidation of Timis Mining and allowing ASX-listed Cape Lambert and others to proceed to arbitration.
Cape Lambert in May launched legal action in Sierra Leone against Timis Mining, Gerald Mining and others, over overdue royalty payments, which stemmed from a 2014 agreement.
Cape Lambert had inked a binding term sheet with Timis Mining to provide financing of $20-million to assist the company with its acquisition of the Marampa iron-ore mine, in Sierra Leone, from the administrators of London Mining.
The agreement was divided into two parts, with the first consisting of an $8-million bridging loan, and the second of $12-million for purchase of royalty. Pursuant to the royalty purchase, Cape Lambert was to receive $2/t of iron concentrate exported from the mine, payable on a quarterly basis on the production of 24-million tonnes from the mine.
Cape Lambert had received $400 000 in royalties, but was owed a further $2.5-million in relation to the March 2015 quarter, when iron-ore production at the mine was ceased.
Cape Lambert executive chairperson Tony Sage said on Friday that the company was delighted that the High Court had maintained an injunction preventing the liquidation of Timis Mining, adding that the company remained committed to recouping funds.