10/10/2019 - 15:22

Venus takes Bosio and Adams to court

10/10/2019 - 15:22

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Venus Metals Corporation has commenced proceedings in the Supreme Court of Western Australia against Davide Bosio, Paul Adams, DJ Carmichael and Spectrum Metals, in relation to Spectrum’s acquisition of the Penny West gold project.

Venus takes Bosio and Adams to court
Venus alleges breaches of fiduciary duty against Davide Bosio.

Venus Metals Corporation has commenced proceedings in the Supreme Court of Western Australia against Davide Bosio, Paul Adams, DJ Carmichael and Spectrum Metals, in relation to Spectrum’s acquisition of the Penny West gold project.

Venus alleges breaches of fiduciary duty, breaches of confidence and misuse of information that it provided to Mr Bosio and Mr Adams of DJ Carmichael in July and August 2018.

The company said it provided information to Mr Bosio in his capacity as a director of DJ Carmichael and to Mr Adams in his capacity as technical adviser to DJ Carmichael, and the parties signed a confidentiality deed.

Venus was assessing the purchase of Penny West.

At that time, both Mr Bosio and Mr Adams were also directors of Spectrum.

Spectrum, including Mr Adams, then undertook negotiations to acquire Penny West and Spectrum announced that it had entered into an agreement to acquire Penny West in October 2018 via its subsidiary Zebra Minerals.

Venus said it therefore claims a constructive trust over Penny West.

In response, Spectrum told the ASX it denies the claims made by Venus and will vigorously defend proceedings.

Spectrum said it has not yet been served with any legal proceedings, and will continue its exploration program in relation to Penny West.

“SPX (Spectrum) is also considering any counterclaim it may have against VMC (Venus) including in relation to the circumstances in which the proceedings have commenced,” it said.

Shares in Spectrum have soared from around 1 cent each at the time of the Penny West acquisition, to 11 cents per share currently, due to several high-grade gold hits at the project.

It purchased Penny West from Patina Resources Pty Ltd and Plateaux Resources Pty Ltd for $1 million in cash and scrip, as well as a 0.5 per cent smelter royalty.

Penny West is located in the Sandstone Shire, east of Geraldton.

In June, Shaw and Partners acquired the Perth-based DJ Carmichael.

As part of the acquisition, DJ Carmichael chief executive Davide Bosio took the role of WA state manager and director of corporate finance under the Shaw and Partners brand.

Mr Bosio did not wish to comment when queried by Business News.

Shares in Venus surged 33 per cent today, to close trade at 22 cents each, while shares in Spectrum were also up 10 per cent finish the day at 11 cents each.

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