A hearing between Murchison Metals Ltd and Chameleon Mining NL is likely to be held early next year as the deadline for the second tranche of security for costs edges closer.
A hearing between Murchison Metals Ltd and Chameleon Mining NL is likely to be held early next year as the deadline for the second tranche of security for costs edges closer.
In an update on the litigation matter launched by Chameleon late last year, Murchison said the second $280,000 security for former Murchison director Phillip Grimaldi was due today.
The Federal Court previously ordered Chameloen to provide the respondents with security for costs, with $650,000 already being provided.
Murchison said a third tranche, likely to be for the amount of $1 million, must be provided by Chameleon when the matter is set for trial.
"Murchison is pleased that the matter is moving expeditiously towards a hearing that is likely to be held in early 2009," the company said.
At a directions hearing earlier this month, the Court ordered all parties to attend a private mediation session on September 8, and the matter was listed for a further directions hearing in September 12.
Chameleon is seeking to gain ownership of Murchison's shares in its half-owned mining subsidiary Crossland Resources Ltd, because of transactions undertake in 2004 by the previous management of Murchison.
Chameleon claims that Murchison contravened the Corporations Act in 2004.
The dispute revolves around the ownership of certain tenements at Jack Hills in the Mid West region.
Below is the full announcement:
Murchison Metals Ltd ("Murchison") provides the following update in respect to the litigation commenced by Chameleon Mining NL ("Chameleon") against Murchison, Crosslands Resources Ltd (in which Murchison has a 50% interest) and several other parties.
On 29 November 2007, Chameleon commenced legal proceedings in the Federal Court claiming an interest in the Jack Hills and Weld Range projects owned by Crosslands and / or Murchison's shares in Crosslands, arising out of a series of transactions that occurred in 2004 before the current Board and management of Murchison were appointed.
In February 2008 Murchison and Crosslands filed their defence to the claim. The other respondents filed their defences in April 2008.
On 12 May 2008, Chameleon was ordered to provide the respondents with security for costs in three tranches. The first tranche, for an amount of $650,000, has been provided.
On 19 May 2008, Chameleon filed its evidence comprising an affidavit by a current director of Chameleon attaching various documents and an unsworn outline of evidence by a former director of Chameleon.
Murchison and the other respondents to the claim have now filed substantially all of their evidence in response to the claim.
In a directions hearing held in the Federal Court on 1 August, the following orders were made:
- Murchison was granted leave to amend aspects of its defence to reflect certain evidence Murchison filed in defence of the claim. These amendments do not affect the substance of Murchison's defence.
- Chameleon was ordered to file a reply to Murchison's amended defence and the defences lodged by the other
parties to the claim by 22 August 2008.
- The Court ordered that the parties attend a private mediation to be held on 8 September 2008.
- The obligation to pay the second tranche of security for costs to Murchison ($300,000) and another respondent
Gregory Barnes ($150,000) was suspended until 9 September 2008, the day after the mediation. The second
tranche of security due to another respondent, Phillip Grimaldi (for $280,000) remains due on 7 August 2008.
- The matter was listed for a further directions hearing on 12 September 2008.
The third tranche of security for costs - for an amount which has not been finally determined but which Murchison expects will be of the order of $1 million - must be provided by Chameleon when the matter is set down for trial.
Murchison is pleased that the matter is moving expeditiously towards a hearing that is likely to be held in early 2009.
Having reviewed the evidence of all parties, Murchison remains confident that there is no sustainable basis for
Chameleon's claim for a material interest in the Jack Hills or Weld Range tenements and/or Murchison's shares in
Crosslands Resources Ltd.
