Kidman Resources Limited (ASX: KDR) (“Kidman”, “the Company”) has received
correspondence from legal representatives for Marindi Metals Limited (ASX: MZN)
(“Marindi”) stating legal proceedings have been commenced in the Western
Australian Supreme Court against the Company.
The basis for the legal proceedings is an allegation that Kidman and Marindi
formed a binding agreement to sell the lithium rights applying to the Mt Holland
Project in WA to Marindi.
The Company confirms that it does not have, nor has it ever had, a binding
agreement with Marindi to sell the lithium rights at Mt Holland, and will continue
to work with its legal counsel on this matter.
No writ of summons or other documentation relating to any legal proceedings has
been served on Kidman to date. The Company intends to vigorously defend any
proceedings if a writ of summons is served and will continue to update the market
in relation to this matter.
Kidman is disappointed that the allegation by Marindi has been made when
discussions between Marindi and the Company, that are the subject matter of the
allegation, ended in April 2016, and without an agreement being reached.
Kidman notes that prior to the last few days, Marindi had not previously alleged
any agreement, and in light of developments since April 2016, the Company views
Marindi’s actions as being opportunistic.
This announcement ends the current trading halt.
MZN Price at posting:
2.0¢ Sentiment: Sell Disclosure: Not Held
