03/08/2009 - 09:50

No impact from Streeter ruling: WSA

03/08/2009 - 09:50

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Western Areas has moved to distance itself from chairman Terry Streeter's $65 million court loss last week as the mining identity considers an appeal.

Western Areas has moved to distance itself from chairman Terry Streeter's $65 million court loss last week as the mining identity considers an appeal.

Last week, a Supreme Court judge found Mr Streeter and director David Cooper had in 2000 taken away a profitable nickel opportunity, which now hosts the Flying Fox mine, from private company Western Areas Exploration.

Messrs Streeter and Cooper had been directors of WAE when they were presented with the nickel prospect by three geologists, but had then used that prospect to float Western Areas.

Justice Eric Heenan last week ruled that WAE can elect to recover around $65 million from lost profits either in cash or scrip. WAE, which counts Perth businessmen Lex Brailey and Garry Connell as directors, have 14 days to decide.

Today Western Areas noted the judgement and stressed it did not affect the ownership of any of its assets or tenements, the number of issues on share or the rights of any other shareholders.

The judgement affects 10.7 million shares owned by Mr Streeter and 400,000 shares held by Mr Cooper.

"For clarity, Western Areas NL was not a party to the court case and WAE is not related to Western Areas NL in any way," the nickel miner said.

It added that Mr Streeter has instructed his solicitors to provide advice on an appeal.

Shares in Western Areas climbed 17 cents to $6.25 at 11:25 AEST.

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