Aquila to appeal court finding over AMCI joint venture

Como-based mining company Aquila Resources Ltd will appeal a finding by the Supreme Court of Queensland that a joint venture partner's sale of its stake did not result in a change of control over the project under their agreement.

Aquila had argued a move by AMCI, which held 50 per cent stakes in the Australian Premium Iron Joint Venture and the Belvedere Coal Joint Venture, to sell its stakes to Brazilian mining giant CVRD triggered a change of control under their agreements, which would have given it rights to acquire the company's interests.

Allan Myers QC has been briefed to represent Aquila in the appeal.

The full text of a company announcement is pasted below

On 4 September 2007, Aquila Resources Limited ("Aquila") reported to the ASX that the Supreme Court of Queensland had handed down its decision ("Decision"), in respect of the Change in Control dispute between Aquila, AMCI and CVRD, finding that the restructuring of the AMCI interests in the Australian Premium Iron Joint Venture and the Belvedere Coal Joint Venture, in which two of Aquila's subsidiaries respectively hold 50% venture interests, did not constitute a 'Change in Control' as defined, under the terms of the respective joint venture agreements.

As previously reported, if a 'Change in Control' under the terms of the respective joint venture agreements occurs, which Aquila has argued before the Supreme Court of Queensland is the case, the Change in Control will result in the relevant Aquila subsidiaries obtaining an option to purchase AMCI's interests in the Australian Premium Iron Joint Venture and the Belvedere Coal Joint Venture (at a price to be determined by an independent expert as at the date of the Change of Control).

After consideration of the reasons for the Decision with its legal team, Aquila reports that it has today instructed its legal representatives to lodge an appeal against the Decision.

Mr Allan Myers AO, QC has been briefed to represent Aquila in the appeal.