"Also, under the Asset Sale Agreement Regis agreed to indemnify IGO for liability arising in relation to the Transferred Royalty on the terms of the Asset Sale Agreement."
The one thing I took out of that announcement was how and why RRL managed to indemnify IGO, yet IGO didn't indemnify against S32. Either IGO realised they stuffed up and got smart with RRL or IGO thought their contract with S32 was sufficient to cover their bases. I guess the court outcome will decide. I do wonder why RRL wanted to wait until 5th Feb to make this announcement and what pressured them to release it earlier... clearly they don't like keeping investors in the loop promptly. I wouldn't be surprised if S32 already contacted them, seeing as though the royalties also apply to their stake. They probably deemed it unsubstantial to disclose publicly .
The 1.5% ongoing royalty doesn't seem too bad, but the backdated interest and one off will sting if they get hit this far down the track. Not sure why S32 has brought the case so long after the contracts were exchanged and how the court will handle that side.
I suspect the price will recover today with spot gold looking to accelerate back to all time highs of 2150. A recession in the US will make the gold appeal even stronger if they do decide to keep interest rates higher and Banks are already pressured with New York Community Bank falling 40% on latest earnings. RRL is a hard one to trade though with any kind of stability...
RRL Price at posting:
$1.98 Sentiment: Hold Disclosure: Held
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