For those that say this site has no meaning - read this. This was sent to numerous papers throughout Australia by the private company Westrip. Great read. Can this battle get any better? This is the best forum on hotcopper.
released by Westrip yesterday
The High Court in London has comprehensively rejected the majority of the arguments pursued by Westrip's minority shareholders.
The Westrip minority shareholders were seeking the Court's permission to run their claims against Westrip's board at the cost of the company (and therefore at no cost to them or GGG, who had agreed to indemnify their costs).
The Court rejected the majority of these requests, and declared that the injunction in respect of the relevant Greenlandic mining licenses would only stay in place going forward if the minority shareholders provided PERSONAL UNDERTAKINGS to cover any damage suffered by Westrip as a result of that injunction. Other assets originally injuncted by the proceedings were released by Mr Justice Lewison.
Significantly, Mr Justice Lewison confirmed that the exploration license of the highly valuable TANBREEZ tenement in Greenland is owned by Rimbal Pty Ltd.
The Court ordered that the Westrip board undertake a further INTERNAL REVIEW of one issue raised in the proceeding to ensure that all relevant factors are taken into account by the company before the Court provides a final ruling on this issue. This is an internal review process to be undertaken by the CURRENT BOARD of Westrip and concerns the existence of a trust.
Given its success in the application, Westrip is seeking an order from the Court that the minority shareholders pay the companies costs of the dispute to date. These costs will ultimately be paid by GGG pursuant to a Deed of Indemnity agreed between GGG and the claimants in London.
In light of the terms of the Indemnity Agreement between GGG and minority shareholders revealed within the London proceedings:
The funding agreement with GGG covers any AWARD OF DAMAGES made against the minority shareholders in London as well as ANY COST ORDERS made in Westrips favour. Damages sought by Westrip in London as a result of the proceedings brought by the minority shareholders could run to many millions of dollars:
Westrip contends that GGG misrepresented the terms of the funding agreement to the market. GGG represented that it had resolved "to financially support the claimants with an appropriate cap to the level of assistance" (21 July 2009). The deed of Indemnity does not include any limit or cap to GGG's exposure in respect of damages or costs arising in the London proceedings. Further, GGG represented that the funding would be "continually reviewed by the board of GGG over time" The terms of the funding agreement confirm that GGG was "locked in" to the funding arrangement for a minimum 12 month period (subject to there being a "material change" in circumstances relating to the Action).
Westrip will continue to pursue all legal action in Australia seeking Full DISCLOSURE of GGG's exploration and financial data as is its right under the joint venture agreement.
(please excuse any typo errors, I only had a hard copy and had to type it out).
GGG Price at posting:
38.5¢ Sentiment: None Disclosure: Not Held
