South Perth-based diversified resources player Aquila Resources Ltd has announced creditors of Pasminco Group Companies have approved the payment of a $14 million dividend to Aquila.
South Perth-based diversified resources player Aquila Resources Ltd has announced creditors of Pasminco Group Companies have approved the payment of a $14 million dividend to Aquila.
This is for settlement of legal actions brought by the company in relation to its proposed purchase of a 49 per cent interest in the Ernest Henry Mine located 195 kilometres south east of Mount Isa, Queensland.
This concludes a dispute that has been ongoing since late 2001.
Today's announcement adds to the agreement to resolve proceedings in the Federal Court of Australia, announced on 5th May.
At market close, shares in Aquila were up 25 cents to $6.95.
Today's announcement and the release dated 5th May are located below:
PASMINCO CREDITORS APPROVE $14M LEGAL SETTLEMENT
Further to its release to the ASX on 5 May 2006, Aquila Resources Limited ("Aquila") is pleased to announce that today the creditors of the Pasminco Group Companies (comprising Pasminco Limited and its subsidiaries) have approved the payment of a $14 million dividend to Aquila (as recommended by the Pasminco Group Administrators) in settlement of legal actions brought by the Company in relation to its proposed purchase of a 49% interest in the Ernest Henry Mine.
The payment of the $14 million dividend to Aquila is unconditional and concludes a dispute that has been ongoing since late 2001 and will avoid further substantial expense and delay, which would inevitably arise if the matter went to a trial.
AQUILA RESOURCES LIMITED SETTLES LEGAL PROCEEDINGS
Aquila Resources Limited is pleased to announce that it has agreed with the Pasminco Group Companies and their Administrators to resolve the proceedings between them in the Federal Court of Australia on the basis that, although the Pasminco Group Companies deny liability:
(a) subject to approval by Pasminco creditors at a meeting to be held on 19 May 2006 (or any adjournment of such meeting), Pasminco Group will pay to Aquila Resources a once and for all dividend from the Pasminco Group administration of $14 million;
(b) the Pasminco Administrators will recommend its approval by the Pasminco creditors;
(c) if the Pasminco creditors do not accept the Administrators' recommendation prior to 30 June 2006, Aquila Resources may (and will) continue the current proceedings; and
(d) upon approval by the creditors and payment of the $14 million dividend, there will be mutual releases by the parties.
The settlement will conclude a dispute that has been ongoing since late 2001 and will avoid further substantial expense and delay, which would inevitably arise if the matter went to a trial.