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"A WA Supreme Court judge has released his reasons for dismissing a $350 million damages claim pursued by creditors of collapsed steel project promoter Kingstream Steel, citing their failure to establish liability on any of its causes of action. Liquidator Bryan Hughes launched the action on behalf of the Kingstream Steel Creditors Trust against St Barbara Mines and a wholly owned subsidiary, Zygot Pty Ltd, for failing to honour a deal to transfer Mid-West iron ore tenements more than a decade ago. Justice Kenneth Martin said that there was no basis to award damages for a lost opportunity. The prospect of profiting from the three Jack Hills mining leases was in 2001 &quot;so wholly speculative and fanciful as to be a lost opportunity of negligible value&quot;, Justice Martin said. The tenements were covered by an exploration licence bought from St Barbara for $4.2 million. Mr Hughes claimed that in 2001 St Barbara accidentally relinquished the tenements, which were picked up by a buyer three months later and sold to Murchison Metals in 2004 as part of a $17 million exploration licence. Justice Martin said there was no basis to award damages for &quot;an even more speculative opportunity to profitably exploit the . . . areas, in a fashion akin to the . . . development of the same areas by Murchison Metals under its Jack Hills Project&quot;. Creditors of Kingstream, which was placed in administration in 2001, are owed between $7 million and $8 million. The listed IMF, which funded the litigation action for about $1 million, and Mr Hughes are yet to decide whether to launch an appeal."
<https://thewest.com.au/business/finance/kingstream-350m-case-fanciful-judge-says-ng-ya-206785>