Kidman wins in Marindi dispute

Kidman Resources has successfully fended off Marindi Metals’ claims of rights to the Mt Holland lithium project near Southern Cross, after a Supreme Court verdict was handed down last week.

The three-day trial, held in late May, centred on discussions between Kidman and Marindi in relation to lithium rights for Mt Holland, which Kidman had considered selling to Marindi last year.

The discussions included emails and text messages between the two companies, with the Supreme Court having to decide whether those correspondences were to be considered formal agreements or not.

“In his reasons for judgement, Justice Kenneth Martin found that there was a need for a binding and enforceable heads of agreement to be first signed off between these parties as a condition precedent to the companies perfecting a binding agreement,” Kidman said in a statement.

“Justice Martin also agreed with Kidman’s characterisation of the early draft agreement as at best ‘an agreement to agree’, in reference to the draft clauses within the draft exchange and that the delineation of the mining rights that Marindi was to hold was uncertain.”

In his determination, Justice Martin also noted the long delay between when the draft agreement was created and when Marindi initiated legal action.

“Were it necessary to decide, I would deny specific performance to Marindi, upon a basis of what was a seriously prejudicial and unjust delay to Kidman,” Justice Martin said.

Kidman managing director Martin Donohue said he was pleased to have the matter resolved.

“We can now focus the attention of our entire leadership team on the fast-tracked development of Earl Grey, and other projects within our portfolio, for the benefit of all shareholders,” he said.

Marindi said in a brief statement that the court hadn’t yet made final orders disposing of the proceedings, which meant that the period in which an appeal can be lodged is yet to begin.

“Marindi is disappointed with the court’s reasons for decision and is considering its position,” it said.

Kidman was represented by Grand Donaldson, and instructed jointly by Maddocks and by Gilbert + Tobin.

Marindi shares fell 12.5 per cent to 0.7 cents each at 1pm, while Kidman shares were 16.9 per cent higher to 72.5 cents.