Stirling, MZI settle tenement legal dispute
JOHANNESBURG (miningweekly.com) – ASX-listed Stirling Resources subsidiary Stirling Zircon and parent company Austria-based DCM Decometal on Thursday reported settling their legal disputes with MZI Resources.
Stirling Resources said that a nonbinding in-principle agreement had been entered with MZI Resources following a legal dispute over certain Tiwi Island tenements.
A historic share purchase agreement (SPA) between the parties outlined that Stirling Zircon would transfer the tenements to MZI in exchange for 78-million shares and $1-million deferred payment obligation.
MZI initiated legal action against Stirling Resources after the latter “formed the view” that the agreement had terminated as MZI failed to issue the agreed shares or pay Stirling Zircon the funds.
The in-principle agreement would see the parties conclude the original SPA, with Stirling Zircon receiving a 0.4% royalty on gross revenue from MZI’s Keysbrook project.
MZI would assume responsibility for the liabilities arising from its activities on the tenements since May 2009.
The in-principle agreement was, however, subject to certain conditions, including both MZI and Stirling obtaining shareholder approvals and MZI obtaining specified minimum levels of debt funding, besides others.
Meanwhile, Stirling also reported the resolution of MZI’s legal action against DCM Decometal, which holds a 83.6% stake in Stirling Resources, over a disagreement regarding an agency agreement between the parties in 2010.
MZI has been disputing a February invoice wherein DCM issued MZI an invoice for $1.3-million for services rendered under the agency agreement. MZI denied liability for payment on the basis that the services were not rendered.
The agency agreement was terminated, with DCM withdrawing its invoice, and agreeing not to issue any further invoices or claim any monies owed under the agency agreement.
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