Marindi, Kidman trial to start today

A battle for control of the Earl Grey lithium deposit near Southern Cross between junior miners Kidman Resources and Marindi Metals will get under way in the Supreme Court today, with the trial expected to conclude within three to five days.

West Perth-based Marindi Metals started legal action in November claiming it had made a deal to buy Earl Grey from Kidman prior to Kidman’s release of exploration results earlier that year.

Kidman will contend no such deal took place.

Business News understands that one question that Marindi would need to be adresses is why such an agreement was not revealed to the market earlier, given continuous disclosure obligations.

Marindi is led by managing director Joseph Treacey, a founding director of Kagara Zinc, which hit trouble in 2012 and eventually went into administration.

Both companies attended a court supervised mediation on April 18, which was adjourned without agreement being reached.

Marindi is also involved in a legal dispute with Rox Resources over the Reward zinc joint venture in the Northern Territory.

Marindi filed a statement of claim over the project in December after Teck Australia, a subsidiary of Canadian resources play Teck, made a $20.6 million deal to buy Rox’s 49 per cent share of the project.

Teck holds the other 51 per cent of Reward, with a pre-emptive right on the remaining stake.

Marindi, which bid for the project prior to Teck’s move to acquire the remaining share, has held that that right may not be valid.

Mediation between the two parties was terminated on May 12, with the two also expected to go to trial.