Marindi backs away from Kidman, settles with Rox

Marindi Metals has conceded defeat in its Supreme Court fight against Kidman Resources over rights to the Mt Holland lithium operation, and has accepted a small settlement payout from Rox Resources over a separate matter.

Perth-based Marindi said this morning that, after considering the Supreme Court’s determination earlier this month, there was no formal lithium rights agreement between the company and Kidman and it would not lodge an appeal on the matter.

“A decision on costs will be determined in chambers following submissions by the parties in the coming weeks,” Marindi said.

Marindi also announced today it had reached a settlement agreement with Rox over the Reward zinc joint venture project in the Northern Territory.

The argument centred on Rox’s joint venture partner, Teck Australia, exercising its pre-emptive rights to acquire Rox’s stake in the project, which had previously been negotiated with Marindi.

“Marindi will receive a cash settlement of $300,000 to cease all litigation relating to its claim,” Marindi said.

In a statement, Rox said the settlement payment was equivalent to a break fee in the original offer put forward to Marindi, while both parties would bear their own legal costs.

Rox managing director Ian Mulholland said the company was pleased to have resolved the matter.

“We can now get on with our core business of mineral exploration and development,” he said.

Marindi and Rox shares were unchanged at 0.6 cents and 1.4 cents each, respectively, at 11:40am.