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- Metalicity (MCT) commences proceedings at the Supreme Court of Western Australia in relation to Nex Metals Explorations’ (NME) failure to pay $1.28 million
- The companies have a joint venture (JV) in two projects — the Kookynie and Yundamindra gold projects
- An initial non-payment notice was issued on March 11 in relation to a payment of $188,618, which was expected to be paid on March 10
- Nex Metals disputed this cash call and its reason was labelled “unsustainable” from Metalicity
- MCT shares dropped 25 per cent and trading at 0.3 cents per share and NME shares were in the grey at 3 cents per share at 11:56 am AEST
Metalicity (MCT) has commenced proceedings at the Supreme Court of Western Australia in relation to Nex Metals Explorations’ (NME) failure to pay $1.28 million.
The companies have a joint venture (JV) in two projects — the Kookynie and Yundamindra gold projects.
According to Metalicity, which is current manager of the JV, Nex has not paid the amount that was owed in March.
In late March, the company issued Nex with a non-payment notice for not paying $1.2 million, which is its share of the approved expenditure for the JV.
An initial non-payment notice was issued on March 11 in relation to one of its payments of $188,618, which was expected to be paid on March 10. Nex Metals disputed this cash call and its reason was labelled “unsustainable” from Metalicity.
Metalicity said the proposed program and budget was approved by vote at the Management Committee meeting on March 8, which MCT says Nex failed to attend, leaving the budget approved in accordance with the JV agreement.
MCT is now wanting to be the full owner of the projects issuing a takeover target.
“The non-payment by Nex Metals strongly supports our view that Kookynie and Yundamindra Joint Venture should be consolidated into ownership by a single entity,” MCT Managing Director said.
“This is not only to keep this project going forward, but also because we believe that progressing under one focussed and qualified management team that can actually progress the project is the best way to realise the potential of the project sooner for all shareholders.”
Last year, the company announced it will make an off-market all script deal to buy Nex Metals Exploration. A number of offers have been made since, with Nex telling its shareholders to take no action.
Earlier this year, Metalicity also announced it wants a leadership overhaul at Nex Metals and will use its shareholding to push this. The company spoke of its intention to use its 32 per cent stake to vote against the re-election of current Nex Metals directors.
On the market, MCT shares dropped 25 per cent and trading at 0.3 cents per share and NME shares were in the grey at 3 cents per share at 11:56 am AEST.
