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BATHURST RESOURCES LIMITED. — Legal Proceedings Report 2016
Dec 22, 2016
64563_rns_2016-12-22_1e4708ba-4dbb-42e1-9b3e-7c5eda9492f9.pdf
Legal Proceedings Report
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T +64 4 499 6830 Level 12, 1 Willeston Street F +64 4 974 5218 Wellington 6011, New Zealand E [email protected] PO Box 5963 Lambton Quay Wellington 6145, New Zealand
23 December 2016
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Market Announcements Australian Securities Exchange Level 4, 20 Bridge Street SYDNEY NSW 2000
Bathurst Resources Limited (ASX:BRL) – LMCH Litigation Filed
L&M Coal Holdings Limited (LMCH) has filed legal proceedings in the High Court, in which LMCH seek a ruling in relation to the payment described below to LMCH. BRL denies that it is in default under the relevant agreements as is asserted by LMCH and this position is supported by the legal advice it has received and BRL will be vigorously defending the claim.
As previously advised, the dispute has arisen out of an agreement for the sale and purchase (SPA) (and subsequent amendments) entered into between BR Coal Pty Limited (whose rights and obligations under the agreement have been assumed by BRL) and LMCH in 2010 and a related royalty deed (Deed) (and subsequent amendments) entered into between what is now Buller Coal Ltd and LMCH in 2010.
LMCH asserts that BRL is now required to make a US$40 million performance payment under the SPA. The SPA provides that “a failure by the Purchaser (BRL) to make, when and as due, a Performance Payment is not an actionable breach of or default under this Agreement (SPA) for so long as the relevant royalty payments continue to be made under the Royalty Deed”. BRL’s view, supported by BRL’s legal advisers, is that BRL has continued to make the relevant royalty payments under the Deed, that there has been no breach of the Deed and therefore there is no actionable breach or default of the SPA.
Information on the performance payments under the SPA has been, and will continue to be, publicly available in the notes to BRL’s financial statements.
On behalf of Bathurst Resources Limited.
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Jason Hungerford Company Secretary Bathurst Resources Limited