Shares in iron ore minnows Cazaly Resources Ltd and Echelon Resources Ltd, which surged suddenly yesterday, fell after the release of a note on their legal progress.
Shares in iron ore minnows Cazaly Resources Ltd and Echelon Resources Ltd, which surged suddenly yesterday, fell after the release of a note on their legal progress.
At close of trade today, shares in Cazaly Resources Ltd had fallen 12 per cent to 68c, down from the high of 77.5c reached yesterday.
The company, which yesterday told the ASX that it could not explain the jump, though speculation centred on impending news regarding legal moves on the loss of the Shovelanna iron ore tenement.
Today released an announcement disclosing that Cazaly had lodged its application to call on Premier Alan Carpenter and former Resources Minister John Bowler, as well as Rio Tinto executive director Leigh Clifford and iron ore head Sam Walsh to testify.
A hearing date for this application, which may go some way to explaining the price rise, has not yet been set.
Shares in Echelon were steady at 44c.
The full text of an announcement released today by Cazaly is pasted below
On 4 August 2006, Cazaly Resources Ltd (ASX: CAZ), by its subsidiary Cazaly Iron Pty Ltd, lodged an application in the Supreme Court for judicial review of the Minister's decision to terminate application E46/678 pursuant to section 111A of the Mining Act 1978 (WA).
On 11 August 2006, His Honour Justice Templeman concluded that Cazaly had an arguable case and granted the order nisi, which referred the matter to the Court of Appeal for review.
The final substantive hearing of the matter is currently listed before the Court of Appeal on 19 and 20 March 2007.
Discovery
As previously foreshadowed Cazaly lodged an application for discovery of various documents including:
Cazaly sought discovery to support Cazaly claim that it was denied procedural fairness because these documents were not disclosed to Cazaly and Cazaly was not given an opportunity to make submissions about the significance of their content prior to the decision to terminate application E46/678.
The Honorable John Bowler MLA, Hamersley Resources Ltd (a subsidiary of Rio Tinto Ltd), Hancock Prospecting Pty Ltd and Wright Prospecting Pty Ltd opposed discovery of the documents.
On 22 December 2006, His Honour Justice Buss substantially allowed Cazaly's application for discovery.
His Honour Justice Buss held that:
DLA Phillips Fox (solicitors for Cazaly) have already received some informal discovery and are currently considering these documents. Formal discovery will be provided on 22 January 2007 and the remaining documents will be inspected during the following week.
By reason of the confidentiality orders, Cazaly is unable to make any comment on the content or significance of these documents.
Leave to adduce oral evidence
On 17 January 2007, Cazaly lodged a formal application for leave to adduce oral evidence.
At the hearing of this application, His Honour Justice Buss will determine whether Cazaly is permitted to call the Honorable Alan Carpenter MLA, the Honorable John Bowler MLA, Mr Leigh Clifford, Mr Sam Walsh and Mr Bob Stevens to lead evidence at the hearing on 22 December 2006.
A hearing date for this application has not yet been set.
