The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • MinRex Resources (MRR) launches legal proceedings to chase up failed payments from its recently completed placement
  • The missing funds come from cornerstone investors who signed legally binding commitment letters to participate in the placement
  • MRR has gone to the Supreme Court of Western Australia, seeking payment for the agreed subscription money and damages arising from the breach, plus interest and costs
  • MRR says it remains well-funded to complete exploration programs despite the outstanding commitments
  • Shares are trading in the grey at 3.3 cents each just before market close

MinRex Resources (MRR) has launched legal proceedings to chase up failed payments from its recently completed placement.

The missing funds came from cornerstone investors who signed legally binding commitment letters to participate in the placement.

The company has gone to the Supreme Court of Western Australia, seeking payment for the agreed subscription money and damages arising from the breach, plus interest and costs.

MinRex has issued more than 158.9 million new shares under the placement and will hold a general meeting to obtain shareholder approval for the free attaching options next month.

Managing Director and CEO George Karageorge said the company will continue to make exploration progress.

“Regrettably, some investors chose not to honour their binding commitments and the company is diligently pursuing recovery of those moneys,” he said.

“Despite the outstanding commitments, the company remains well funded (with over $13 million in cash on hand) to complete its project field program and maiden drilling programs over its Eastern Pilbara and Marble Bar Lithium-Tin-Tantalum Project areas.”

Shares were trading in the grey at 3.3 cents each just before market close.

MRR by the numbers
More From The Market Online

Australia and New Zealand seen as top places for business

Australia has moved up the ranks in terms of its 'reputation' and ease of doing business,…
The Market Online Video

Bitcoin: what’s driving the major comeback?

Why is bitcoin suddenly making a comeback after a dormant couple of years? Watch the video above…
The Market Online Video

Market Close: Autumn’s ASX200 record breaking start

The ASX200 has closed the first day of Autumn at a new record 7745.6 points -…