TORONTO, Feb. 10, 2012 /CNW/ - On 4 November 2011, Gladstone Pacific
Nickel Limited (the Company) announced that a claim brought against it by a minority shareholder,
Robash Pty Limited (Robash), had been dismissed pursuant to a judgment of the Supreme Court of New
South Wales. Subsequently, the Court made a costs order against Robash
and Robash filed a Notice of Intention to Appeal on 29 November 2011.
The Company has now entered into a legally binding settlement with
Robash, under which the Company can recover the costs it has incurred
in relation to the legal proceedings, and pursuant to which the Company
and other parties mutually release each other from certain liabilities.
In addition to recovering its costs, as part of the settlement the
Company will also be released from future obligations to pay certain
royalties to some of its minority shareholders, including Robash and
RAB Special Situations (Master) Fund Limited (RAB).
The releases are also conditional upon a number of minority shareholders
(including Robash and RAB, who in total hold approximately 28% of the
issued shares of the Company), transferring their shares in the Company
to the Company's major shareholder, Fairway Coal Pty Limited (Fairway), a company owned by Professor Clive Palmer. The consideration for
these transfers includes the release of independent legal proceedings
commenced by Professor Palmer against some of the minority shareholders
(including Robash, but not RAB). The consideration for the transfer of
the shares in the Company from RAB to Fairway is agreed to be 5 cents
(A$0.05) per share, which is the same price at which the Company's then
major shareholder, Waratah Coal Pty Limited (a company also owned by
Professor Clive Palmer) acquired shares in the Company pursuant to the
takeover offer made by it on 28 June 2011.
The settlement terms are legally binding, and are subject to the
the elements of the settlement (payment, release of claims and, in the
case of Fairway, transfer of shares) are binding - all elements must be
implemented for the settlement to be effected; and
the approval of the Company's shareholders is required for the transfer
of shares in the Company to Fairway. Such approval must be obtained by
way of ordinary resolution at a meeting of shareholders upon which none
of the transferring shareholders, Fairway or their associates will be
entitled to vote in favour.
These conditions must be satisfied by 20 April 2012, unless the parties
Documentation for the shareholders meeting is currently being prepared
and is anticipated to be dispatched to shareholders by the end of
Gladstone Pacific Nickel Limited is an Australian mining development
company presently undertaking an Integrated Definitive Feasibility
Study for the Gladstone Nickel Project. The Company's vision is to
build a major long-life nickel cobalt refinery at the deepwater Port of
Gladstone, in Central Queensland, Australia, treating abundant high
grade nickel laterite ores from New Caledonia and other south-west
Pacific islands, underpinned by beneficiated ores from its own
Marlborough deposits. The Project has the potential to be one of the
largest of its type in the world producing some 126,000 tpa nickel (8 -
10% of global nickel demand) and 10,400 tpa of cobalt metal from its
first two stages.
Disclaimer: This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this news release,
other than statements of historical facts, that address future
exploration drilling, exploration activities and events or developments
that the Company expects, are forward looking statements. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those in forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include metal prices, exploration success,
continued availability of capital and financing, and general economic,
market or business conditions.
SOURCE Gladstone Pacific Nickel Ltd.
For further information:
For more information or comment:
Blair Brewster - Gladstone Pacific Nickel Ltd Tel:+61(0)7 3231 7100