Not exactly flattering for CHM. HA HA Its beginning to unravell.
''Legal flick pass''
Chameleon Mining has found that digging up dirt is a better way to earn a crust than litigation funding. That's because Chameleon - on whose board sits league legend Benny Elias - has discovered that legal action breeds legal action.
Chameleon had wanted to raise $2.3 million via a rights issue to fund legal actions against Murchison Metals, including a case by a chap named David Evans. He's the same David Evans who got to know the Abu Dhabi authorities very well last year after making the most of Etihad's inflight services.
But the potential for further "obstacles and distractions" has forced Chameleon to opt for a $1.5 million debt facility and share purchase plan instead.
A few legal letters from a Chameleon shareholder, Phillip Grimaldi (who happens to be a former Murchison director), and another so-called "frivolous legal claim" from Marten Ynema have led Chameleon to pursue alternative fund-raising options.
Surely Elias must find the legal battlefield tougher than roughing it on the rugby league paddock. Although he did recently fork out about $60,000 to raise his stake in the listed litigation funder, er, sorry, gold explorer.
MMX Price at posting:
$1.95 Sentiment: Hold Disclosure: Held
