settlement of litigation - emax

Burdekin Pacific Limited ASX Announcement
Burdekin Pacific Limited A.C.N. 059 329 519
Level 13, BGC Centre 28 The Esplanade
Perth WA 6000 Phone: +61 8 9322 6045 Fax: +61 8 9481 5557 Email: [email protected] Enquiries regarding this announcement can be directed to either: Mr Jerome G Vitale Director and Chief Executive Officer or Ms Susan J Field Executive Director and Company Secretary Phone +61 8 9322 6045
ASX Code: “BKS” e-lodgement 1 Page
Date: 23 February 2005

Settlement of Litigation – eMAX Entertainment Pty Ltd (“eMAX”)
The Company is pleased to report that agreement has been reached to settle outstanding litigation with a vendor and former director of eMAX. Details of the legal actions are contained in the Company’s 2004 Annual Report, (refer notes 20 (a) and 23 (a), page 76 and 80 respectively).

Having regard to the considerable ongoing administrative costs, management time and the high legal costs of conducting litigation in the NSW jurisdiction, the Company has agreed to settle the claims on the following terms:
(a) pay the sum of $40,000 to the vendor on or before 31 May 2005;
(b) issue the vendor with 5.35 million shares in Bur dekin by 1 May 2005. These shares will be subject to escrow provisions which will limit the sale of the shares to a maximum of 750,000 shares in any calendar month;
(c) all parties to bear their own costs in relation to the
litigation. Pending the outcome of the actions, the Company has carried in its books provisions and liabilities for the litigation during the period of the proceedings. The net effect of the settlement will be to reduce non current liabilities and deferred equity by approximately $500,000 and to increase consolidated net assets by the same amount.
Yours faithfully
Burdekin Pacific Limited
Susan J Field
Director and Company Secretary

In my opinion, the problems are quickly disappearing for this company. This will save them from ongoing litigation costs and free up time to concentrate on the Mt Kasi Gold Project.

Constructive comments & discussion please.
I hold bks
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