PERTH (miningweekly.com) – ASX-listed Marindi Metals and Rox Resources have buried the hatchet, with the two companies reaching an agreement over Rox’s sale of its interest in the Reward joint venture (JV).
Rox in August last year accepted Marindi’s A$21-million offer for its 49% share in the Reward project, subject to JV partner Teck Resources not exercising its option over the project. Teck can earn a 70% interest in the Reward project by spending A$15-million by 2018.
At the time that Rox and Marindi struck the deal, Teck expressed its concern over the agreement and its implications for the JV agreement, reserving its pre-emptive rights.
The Canadian miner in October exercised its rights to match Marindi’s offer, offering Rox a cash consideration of A$8-million shares worth A$3.6-million, or, alternatively, A$2.6-million in cash, a three-year promissory note with a face value of A$5.25-million, and a deferred payment of A$3.75-million, payable upon the completion of a bankable feasibility study or the expiry of six years, whichever came first.
However, Marindi did not accept that Teck exercised its pre-emptive rights in the manner and time frame required by its JV agreement with Rox, and earlier this year launched Supreme Court proceedings against Rox over the transaction.
Marindi has now agreed to discontinue the legal action, after the two companies reached a settlement agreement under which Marindi would receive a cash settlement of A$300 000 to cease all litigation.
Marindi told shareholders that it was pleased to have concluded the action, and was looking forward to advancing its own suite of zinc and base metals prospects in Western Australia and the Northern Territory.