The article below in the SMH is incorrect. Victor Bradley and...

The article below in the SMH is incorrect. Victor Bradley and Bill Cash did not take up their perf rights in Feb.

I reckon that this will not go any further and if it does NS will def lose.

A muddy one for His Honour
When is a hole in the ground a mine, and when is it just a hole?
That is the question the Federal Court judge Arthur Emmett will soon be deciding after a billion-dollar US hedge fund took the zinc miner AIM Resources to court arguing that its Perkoa zinc mine in Burkina Faso, west Africa, is really just an incomplete hole.

It's in AIM's interests to argue the hole is complete, because it allows it to trigger the issue of 8 million performance rights to directors. But a Connecticut hedge fund, North Sound Legacy, International, which owns nearly 10 per cent of the company, says the performance rights should not have been exercised by the directors both because they had already expired and because the mine was not complete and no ore had been produced.

Lawyers for AIM yesterday said they had commissioned an expert to report on whether its "box cut" described to the court as "the way to obtain access to the hole in the ground" is or is not complete or whether they need to add "ancillary bits" to call it a complete mine.

The company has previously told the market that the box cut was completed last June, but only months later it was damaged by heavy rains, and repairs would not be completed until the end of the month.

It has also stated that essential services including power, water, communications, ventilation, fuel and explosives would not be in place until April. Nor is there a processing plant, or complete access roads, and it does not expect to deliver the first ore until November.

A witness from the hedge fund, believed to be Thomas McAuley, is expected to give evidence from Connecticut via video link when the case goes to hearing in May.

The managing director, Bill Cash, converted his 2 million performance rights into shares in February, Victor Bradley converted 4 million in February, and the director Louis Mnguni converted his 2 million in November
Finally, some reasons for the dispute with North Sound.