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Former shareholder threatens action over Oz debt refinancing

Former shareholder threatens action over Oz debt refinancing

Photo by Bloomberg

17th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals miner Oz Minerals on Monday warned shareholders that it was facing possible legal action regarding the 2008 refinancing of its debt.

The miner has reportedly received a letter from a Sydney law firm representing a former shareholder of Zinifex, which stated that its client would launch proceedings against Oz on behalf of all Zinifex shareholders which acquired shares in Oz.

Oz Minerals was formed in June 2008 following a merger between Oxiana and Zinifex. Under the merger, Zinifex shareholders received 3 1931 Oxiana shares for each Zinifex share they owned, which gave the shareholders of each firm 50% of the merged Oz Minerals.

Oz Minerals said on Monday that the reported proceedings alleged Oz’s failure to disclose information to the market regarding the refinancing of its debt.

No proceedings have been started; however, the miner said that it would “vigorously defend” any proceedings.

The copper and gold miner last week reported a net loss after tax of A$294.4-million for the 2013 financial year, compared with a net profit of A$152-million in the previous financial year.

Edited by Creamer Media Reporter

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