Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed KBL Mining was again wading through the thicket, this time facing investigation by debt holder Capri Trading for an alleged breach of its general security agreement (GSA).
Capri Trading regained a A$12.6-million KBL debt from ASX-listed Kidman Resources earlier this month, which was secured against all of KBL’s assets, including its operating Mineral Hill base metals mine and its Sorby Hills lead/silver deposit, in Western Australia.
Kidman had taken over the debt from Capri Trading in November last year, and subsequently initiated a tug-of-war with KBL over the repayment of the debt, KBL’s board structure and the company’s ability to provide funding to support its mineral assets.
Shortly after regaining the debt from Kidman, Capri Trading issued KBL with an Events of Default notice under the GSA which preceded the loan, claiming that KBL had withheld relevant information from its shareholders regarding the Capri-Kidman November sales agreement.
KBL denied the claims, pointing out that Kidman itself had made the agreement available to the share market, and denying that the company had any responsibility to do so.
Furthermore, KBL also denied that the mining mortgage clause within the GSA had been breached.
On Capri’s appointment of investigators into the matter, KBL said on Friday that the appointment had no foundation, and would refuse the investigators access to the KBL premises or its records.
Furthermore, KBL has ordered its legal team to seek a withdrawal notice from Capri, in regard to the appointment of investigators.