THE BOURSE WHISPERER: Rox Resources (ASX: RXL) announced that Marindi Metals (ASX: MZN) has agreed to discontinue the Supreme Court proceedings it commenced against the company.
The court proceedings stem from the sale of Rox Resources’ interest in the Reward project, for which Marindi had originally made an offer.
However, under the terms of an Earn-in and Joint Venture Agreement between Rox Resources and Teck Australia, the latter retained a pre-emptive right over Rox’s interest in the project, which meant Rox was obliged to offer to sell its interest in the Reward project to Teck on the same terms and conditions.
Under the newly-struck settlement terms a payment of $300,000 cash will be made to Marindi by Rox (equivalent to the Break Fee in the original Marindi offer).
Each party will bear its own costs up to this point, and will have no further claims against the other.
“We are pleased to have resolved this matter,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“We can now get on with our core business of mineral exploration and development.”