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INTREPID Mines (ASX:IAU) will appeal a decision by an Indonesian court that a former partner was intimidated into selling his stake in the business.
Paul Michael Willis was awarded almost $14 million in damages after convincing the court he was surrounded by armed guards and numerous Intrepid representatives as he signed documents in relation to the sale in April, 2008.
Willis instigated the legal action against Intrepid Mines, Emperor Mines, two Company executives and Indonesian joint venture partners, PT Indo Multi Niaga, Andreas Reza Nazaruddin and Maya Miranda Ambarsari.
The court recognised Willis’ 70 per cent economic interest in the Tujuh Bukit project and therefore subsequent agreements entered into between IMN and Emperor, including the agreements establishing the Tujuh Bukit joint venture, were declared void.
Intrepid CEO Scott Lowe has steeled the company for a further fight.
“We firmly believe that the expert testimony and evidence placed before the Court warrants further consideration by the High Court of Jakarta,” says Lowe.
“I remain confident that the grounds for appeal and reversal of the judgment in favour of Intrepid shareholders are very strong.”
The Tujuh Bukit area, in Java, is recognised as one of the top undeveloped gold and copper deposits in the world.
Intrepid has lost its stake in the are project to IMN, Reza and Maya and is continuing to pursue its entitlements to the project in arbitration proceedings commenced under the rules of the Singapore International Arbitration Centre.
IAU stock remains valued at $0.275 per unit, unchanged on the previous day’s close.
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