MCC makes $80m escrow payment - Cape Lambert
PERTH (miningweekly.com) – Iron-ore developer Cape Lambert on Tuesday told shareholders that Metallurgical Corporation of China (MCC) had transferred A$80-million into an escrow account held with the National Australia Bank, following an order by an arbitrator.
In September 2010, Cape Lambert turned to the Supreme Court of Western Australia in an effort to recover a final A$80-million payment from the sale of its magnetite iron-ore project, in mid-2008, to MCC.
The company had previously received A$320-million of the agreed A$400-million sales price, but MCC had failed to make the final payment.
In March this year, the court referred the dispute to arbitration in Singapore, with the arbitrator in September ordering MCC to pay the outstanding amount into a jointly held escrow account.
Cape Lambert executive chairperson Tony Sage said on Tuesday that while not a resolution of the substantive legal dispute, Cape Lambert believed the fact that MCC had complied with the arbitrator’s order and deposited the money into an externally controlled account, was important.
He added that the company was hoping to see a more expedited resolution to the pending legal action.
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