The legal stoush between Subiaco-based explorer TNG Ltd and the Commonwealth government has been adjourned until August as the company's share price jumps 68 per cent on the discovery of high-grade iron in the Northern Territory.
The legal stoush between Subiaco-based explorer TNG Ltd and the Commonwealth government has been adjourned until August as the company's share price jumped 68 per cent on the discovery of high-grade iron in the Northern Territory.
In a statement to the market, TNG said proceedings, which began on June 10 in the Supreme Court of the Australian Capital Territory, are scheduled to restart in late August, and is listed for an additional five weeks of hearing then.
The Commonwealth claims that it is entitled to $2.1 million comprising of shares and interest in Kanowna Lights NL, now known as Peninsula Minerals Ltd, that are held by TNG.
"The Commonwealth has claimed that as constructive trustee, TNG is liable to account for the highest market value at which the shares could have been sold and interest on that market value," TNG said.
"The Commonwealth claims that it is entitled to an amount of $2.1 million representing a claim of $1.2 million for the value of Kanowna Lights NL shares and interest thereon since 23 October 2000."
TNG said it would vigorously defend the claims.
Meanwhile TNG said rock chip sampling at its wholly-owned Manburrum project in the NT had resulted in the discovery of high-grade hematite iron mineralisation in an area known as the Legune prospect.
TNG said the discovery contained numerous results of over 60 per cent iron.
Studies confirmed that the prospect is around 900 metres in length and 500m in width with an unknown depth extend.
TNG said that once all results had been received, a drill program will be planned to test the thickness and depth of the hematite iron mineralisation.
Shares in the company jumped from 9.5c to a high of 16c before cooling to last trade at 12.5c just before market close.