For those who are unfamiliar with the Davis Samuel issue, here...

For those who are unfamiliar with the Davis Samuel issue, here is an extract taken from the most recent activities report on 28/4/08:

Davis Samuel Matter
In the period September to December 1998 management of TNG was held by interests associated with Davis Samuel Pty Ltd (Davis Samuel). Those nominees committed TNG to a series of transactions involving expenditure totalling $1,526,000. The transactions involved the purchase of shares and options in Kanowna Lights NL (the Kanowna Securities).
The Australian Securities Exchange Ltd (ASX) ruled that the transactions required shareholder approval, and shareholders voted against approving the transactions.

Quarterly Report MARCH 2008 11
In December 1998, TNG entered into a settlement agreement with Davis Samuel and its then defacto Directors which effectively provided for the repayment of the funds
expended, and TNG would in turn transfer the Kanowna securities.
The Commonwealth of Australia (the Commonwealth) in proceedings in the Supreme Court of the Australia Capital Territory claims that it is entitled to a constructive trust
over the Kanowna Securities and in 1999 obtained an injunction preventing TNG from selling or otherwise disposing of them. The Commonwealth has claimed that as
constructive trustee, TNG is liable to account for the market value of the shares and interest on that market value.
Subsequently, in 1999 Davis Samuel purported to rescind the Settlement Agreement.
TNG, as a party to the proceedings instituted by the Commonwealth, has issued crossclaims against Davis Samuel and several other parties including Messrs Endresz, Cain,
Forge, Muir and Clark.
There has been a considerable lapse of time since the proceedings were instigated and the current status of the matter has been routinely disclosed in TNG’s financial
statements since 1999.
The matter has now been listed for trial in Canberra commencing 10 June 2008 for three weeks, with the possibility of additional hearings in August/September.
TNG has retained Perth based solicitors, and Sydney based senior and junior counsel to defend the claim and pursue its cross claims.

For further background refer to http://www.delisted.com.au/Company/3789/HALLMARK%20GOLD%20NL.

While I am purely speculating, I would imagine that since the court date has been set for 10th June 2008 and we are already in a trading halt, some settlement may have already been reached.