Rox rejects Marindi’s Reward claims

Rox Resources has locked horns with Marindi Metals over a failed bid to acquire its stake in the Reward zinc project, a day after Marindi started legal action against Kidman Resources over another deal which Kidman says doesn’t exist.

Last month, Teck Australia matched Marindi’s competing bid for Rox’s 49 per cent interest in the Reward project, offering $20.6 million in cash and shares.

Teck, which already owned 51 per cent of the project, held a pre-emptive right to match any offer put forward to Rox to acquire the 49 per cent interest and be accepted by Rox.

On October 19, that pre-emptive right was exercised by Teck. At the time, Marindi said it would seek legal advice on the validity of Teck’s pre-emptive right.

Today, Marindi’s legal representatives have argued that Rox remains bound to complete the sale of the Reward stake to Marindi.

“The company maintains that Teck has validly exercised its pre-emptive right to acquire the Reward zinc project,” Rox said in a statement.

“Marindi was always aware that Teck could elect to exercise its pre-emptive right, and is disappointed with the steps now being taken by Marindi.

“The company has notified Teck of these developments and will strongly defend any legal proceedings commenced by Marindi.”

Meanwhile, Marindi has launched proceedings in the Supreme Court of WA against Melbourne-based Kidman Resources over a binding agreement for lithium rights.

Kidman told the market yesterday that Marindi’s announcement that Kidman had agreed to sell its lithium rights to Marindi under a binding agreement was false, and denied that any agreement had been reached.

“The company is currently considering its legal options in relation to the Marindi announcement,” Kidman said.

That prompted Marindi to respond by issuing proceedings in the Supreme Court, seeking declaratory relief that a binding agreement does in fact exist between the two companies.

Rox shares exited a trading halt this morning, and were 11.7 per cent lower to 1.5 cents each at 10am.