24/11/2014 - 15:38

TNG legal battle over

24/11/2014 - 15:38

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Subiaco-based resource exploration company TNG has been awarded damages of $3.5 million after a court case that spanned more than a decade, but has cautioned that the impact of the "extraordinarily complex" judgement remains unclear.

TNG legal battle over
The judgment is in for the Davis Samuel dispute.

Subiaco-based resource exploration company TNG has been awarded damages of $3.5 million after a court case that spanned more than a decade, but has cautioned that the impact of the "extraordinarily complex" judgement remains unclear.

The company, which was formerly known as Hallmark Gold, was one of 27 defendants in a legal dispute between the Commonwealth and Davis Samuel.

In the late 1990s, a public servant from the Department of Finance reportedly misappropriated $8.3 million in funds, some of which were later used by eastern states-based business partnership Davis Samuel to acquire a slice of Hallmark.

TNG was awarded judgement against 10 parties, including four individuals declared bankrupt on 29 July, and two companies now in liquidation.

The company said it did not know the financial position of the remaining six parties.

TNG was also ordered to pay the Commonwealth almost $700,000 for more than 3 million shares in Peninsula Energy (then Kanowna Lights), which were fraudulently bought by former Hallmark Gold directors with Commonwealth money.

But the judge also ordered that the 10 parties would indemnify TNG for all amounts liable to the Commonwealth.

The company said it had offered to return these shares previously but was unable to reach an agreement.

TNG managing director Paul Burton said the company would focus on its Mount Peake vanadium project in the Northern Territory.

“While the judgment is extraordinarily complex the outcome for TNG is far better than the potential downside,” he said.

“Our legal team will thoroughly investigate the multi-million dollar judgments we have received against the various parties, however these may never be realised given (their) quoted financial status.”

TNG closed down 2.3 per cent to 8.6 cents per share.

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