"On 18 December 2022 TMM Group (Operations) Pty Ltd (TMM), a subsidiary of Macmahon Holdings (ASX: MAH) initiated legal proceedings in the Supreme Court of Western Australia against Strandline’s subsidiary Coburn Resources Pty Ltd (Coburn) claiming that Coburn owes TMM in the order of $13.5 million and recovery of the amounts of two bonds drawn down by Coburn at a value of $1,195,000 each. TMM’s claim was amended on 19 July 2023 to increase to approximately $15.4 million (net of amounts already paid on adjudication). TMM has not included any additional claims, and the Company considers this increase appears to be due to an accounting reconciliation. The Company’s currently pleaded Counterclaim is for an amount of $7,836,330, representing a claim for the return of payment made to TMM by Coburn as a result of an adjudication process in 2022, and one separate individual claim brought by Coburn against TMM.
The Company is subject to contractual arrangements as a result of the development, commissioning and ongoing operations of the Coburn Mineral Sands Project. Occasionally contractual disputes arise relating to commercial contracts. The Company currently has claims in progress (both for and against the company), however it is not possible to estimate the financial effects of these claims. From time to time the Company may raise provisions or accruals in relation to these matters.
At the date of this report, the Company has assessed the possibility of any net outflow of economic benefits, in relation to all of these matters, which have not already been provided for in this report, as being unlikely and/or immaterial. The Directors are not aware of any other contingent liabilities as at 30 June 2023 (30 June 2022: $nil)"
STA Price at posting:
12.0¢ Sentiment: Hold Disclosure: Not Held
(20min delay)