WA’s Supreme Court backs Empire to recover $1 million owed
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The Supreme Court of Western Australia has backed WA gold producer, Empire Resources Ltd (ASX:ERL), in its bid to recover $1 million owed to it by its JV partner in the Penny's Find Joint Venture.
ERL holds a 60% interest in and acts as Manager for the Penny's Find Joint Venture that owns and operates the Penny's Find gold mine, located 50km northeast of Kalgoorlie in Western Australia. The remaining 40% mine interest is held by private company Brimstone Resources Ltd.
ERL today announced that it will exercise its rights under the mortgage and security documents held by it, and other means available to it, to recover the approximately A$1 million owed to it by Brimstone. This follows Brimstone failing to make the repayment to ERL that was due on or before June 6.
On June 7 ERL reported that Brimstone had sought an injunction from the Supreme Court of Western Australia to prevent ERL taking action under the mortgage and security documents it holds over Brimstone's interest in the Penny’s Find JV and other property. This followed Brimstone's failure to pay more than $1 million owing to ERL for the open-pit mining outcomes.
Brimstone’s application for this injunction was dismissed by a judge of the Supreme Court of WA on 18 June. This decision was subsequently appealed by Brimstone to the Court of Appeal. This new appeal matter was heard before the Court of Appeal yesterday, where it was dismissed and costs were also awarded against Brimstone.
ERL Managing Director, Mr David Sargeant, welcomed the court findings, “The latest court ruling reinforces the belief of the Empire Board that the court applications by Brimstone, which has related party interests currently seeking to remove the entire Empire Board of Directors – have been nothing short of deliberately obstructive.
“On all observations, Brimstone’s actions were designed to both delay its $1 million plus mine payment obligations and, create smokescreens around the incumbent Board.
“Thankfully, the WA Supreme Court has ruled on the true balance of the issues at hand and found in favour of Empire. It is a ruling which has to now draw into question the relevancy and alleged purpose of the dissident Brimstone-related shareholders in pushing for a shareholders’ vote late next month, seeking a spill of the entire Empire Board.”
Empire will now exercise its rights under the mortgage and security documents to appoint a receiver to Brimstone's interest in the PFJV and other means available to it to recover approximately $1 million from Brimstone.
Overall this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
Penny’s Find has recently completed its initial open-pit gold mining operation and awaits a final investment decision around whether the mine will make the transition to an underground gold mining operation.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.