Updated July 07, 2017 20:51:09 Kidman Resources will retain control of a $200 million-plus lithium deposit in Western Australia's Goldfields after the Supreme Court dismissed a claim by Marindi Metals over the project. Marindi contended it had a binding contractual agreement to acquire the lithium rights for Kidman's Mt Holland operation near Southern Cross. It argued in court Kidman had agreed in a series of emails and text messages in April last year to sell the lithium rights to its land for $275,000 in cash and shares. The Earl Grey discovery at Mt Holland ranks as the second biggest lithium deposit in WA. In his judgement on Friday, Justice Kenneth Martin dismissed Marindi's claim outright. He found it was a "relatively straightforward legal conclusion that no binding or concluded contractual agreement was ever reached" by the parties on the matter. The two companies had decided a signed-off heads of agreement was needed first before negotiating a binding agreement on the lithium rights. But Justice Martin said even the draft heads of agreement had not been concluded in April 2016. He agreed with Kidman's lawyer that at best "an agreement to agree" on the draft clauses of the heads of agreement was all that had been reached. "Marindi's case is seen to fail at the first hurdle," Justice Martin said in his judgement. Demand for lithium is booming because of its use in new generation batteries and electric vehicles. Kidman shares have risen 25 per cent since the trial began in May, as most market analysts had predicted the judgement would be in its favour. Marindi's share price has tumbled 75 per cent since January. In a statement to the stock exchange, Marindi's managing director Joe Treacy said the company was disappointed and considering its position. He noted the period in which an appeal could be lodged had not started. Topics: courts-and-trials, mining-rural, wa, southern-cross-6426 First posted July 07, 2017 19:25:38
The Supreme Court has won a court battle over a AUD200m ($153m) lithium deposit in Western Australia's Goldfields. Kidman Resources dismissed a claim by Marindi Metals that contended it had a binding contractual agreement to acquire the lithium rights for Kidman's Mount Holland operation. The Earl Grey find at Mount Holland is western Australia's second largest deposit of lithium, demand for which is booming thanks to new-generation batteries and electric vehicles.