Basically what happened was there was a junior explorer Northern Energy Corporation who was planning to develop the Colton project in the Maryborough Basin. They signed up for a take or pay arrangement with Stage 1 WICET.
When New Hope took over Northern Energy in 2011 they inherited the contract, and then didn't end up developing the Colton Mine. When they realised it was a shit mine and the WICET liability increased, New Hope put Northern Energy into administration in 2018 and took an impairment on the asset.
Then New Hope argued that they were no longer liable for the take or pay obligation as Northern Energy was in administration, but WICET are still chasing them for the cash. Its not going to break them obviously but I thought this court case was done and dusted.
NHC Price at posting:
$4.05 Sentiment: Hold Disclosure: Held
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