Murchison, Chameleon hearing delayed

The directions hearing between Murchison Metals Ltd and Chameleon Mining NL has been adjourned until next week after the judge presiding over the matter did not attend.

Murchison company secretary Chris Foley told WA Business News that the judge appointed to the matter is currently in Norfolk Island, forcing the hearing to be delayed till next Friday.

The directions hearing follows an unsuccessful court-ordered mediation session held in Sydney earlier this week.

Chameleon is seeking to gain ownership of Murchison's shares in its half-owned mining subsidiary Crossland Resources Ltd, because of transactions undertake in 2004 by the previous management of Murchison.

Additionally, the Sydney-based Chameleon is planning to raise $2.7 million through the issue of 100 million new shares to existing shareholders, at 2.7 cents each.

The company has also entered into a structured debt facility of $1.5 million at 10 per cent interest. Funds from the placement and loan will be used towards the company achieving its corporate objectives.