some interest, page-8

The latest. I wonder if KUTh has to deal with strange?

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Strange legal fight heats up

James McGrath
Wednesday, 8 February 2012

DRILLING contractor Coretrack could be forced to hand over its $A5 million drill rig to a company that owns patents on the machine in the latest twist to an ongoing legal stoush.

Warren Strange’s company Strange Investments has filed an injunction against Coretrack in the Supreme Court of WA which, if successful, will compel Coretrack to deliver its GT3000 rig to Strange.

Last week it emerged that Strange, a former director of Coretrack, had terminated its intellectual property agreement with Coretrack subsidiary Globe Drill.

Strange Investments is alleging that modifications undertaken on the rig during a contract with Newcrest Mining at the Telfer gold mine constituted a contravention of the original IP agreement.

Coretrack denied this, saying that any modifications made were either necessary for safety or minor in nature.

Strange Investments is citing a clause in the IP agreement which says the rig should be delivered to it the event the agreement is terminated.

Coretrack will contend in the Supreme Court this Thursday that if it is to deliver the rig to Strange Investments, that this would not constitute a change in ownership, prohibiting Strange Investments from using the rig commercially.

Coretrack has previously claimed Strange tried to tie up a deal in Slovakia for the use of the drill.

According to Coretrack, the deal fell through when it emerged the company that the drill would be hired to was owned by Strange’s 22-year old son and had a capitalisation of $A2.

Strange is also seeking an order which would prohibit Coretrack from selling or dealing in any way with the rig.

Coretrack is aiming to sell off equipment and assets of Globe Drill as a result of the legal fight, something which Coretrack chief executive Bernie Kelly previously told ENB made raising money “impossible”.

It is now seeking to sell of $11 million worth of equipment, which excludes the drill and two other pieces of equipment Strange has requested.

Coretrack has also confirmed that is gearing up for a fight with Strange Ito pursue damages for what it sees as the unlawful termination of the IP agreement and loss of income stemming from the dispute.