For the year ended 30 June 2006
The company currently has one property lease at 613-619 Wellington St, Perth, W.A. The lease is a non-cancellable lease with a five-year term that commenced on 28 April 2004.
28. LEGAL PROCEEDINGS
Aspermont had previously commenced proceedings against Excalibur Mining Corporation U.K, (Excalibur U.K) and Excalibur Mining Corporation Limited (formerly Strata Mining Corporation Limited) (“Excalibur”) in the Federal Court of Australia claiming damages for breach and guarantee of the share sale agreement for the sale of its shareholding in Magyar Mining plc and also for misleading conduct contrary to section 52 of the Trade Practices Act 1974. In the proceedings Aspermont is also claiming damages from Mr Stephen Miller, a director of Strata, for misleading conduct contrary to section 10 of the Fair Trading Act 1974 (WA).
The company has brought to account the amount of $600,000 as revenue during the financial years ending 30 June 2004 and 30 June 2005 in relation to agreements reached with Strata Mining Corporation Limited (“Strata”). The company has received $75,000 in part payment of this amount and the balance remains the subject of Federal Court proceedings for recovery.
If the company is unsuccessful in its claims against Excalibur U.K, and Excalibur, the company may have to reverse the remaining balance of $525,000 previously recorded as income and recorded as a current receivable in this financial report. This would result in a reduction of both net profit and net assets by $525,000 in the financial period in which the claims are judged unsuccessful.
The directors are of the opinion that the matter will be resolved favourably and the company is hardened in its resolve to seek a commercial outcome.
The company currently has one property lease at 613-619 Wellington St, Perth, W.A. The lease is a non-cancellable lease with a five-year term that commenced on 28 April 2004.
28. LEGAL PROCEEDINGS
Aspermont had previously commenced proceedings against Excalibur Mining Corporation U.K, (Excalibur U.K) and Excalibur Mining Corporation Limited (formerly Strata Mining Corporation Limited) (“Excalibur”) in the Federal Court of Australia claiming damages for breach and guarantee of the share sale agreement for the sale of its shareholding in Magyar Mining plc and also for misleading conduct contrary to section 52 of the Trade Practices Act 1974. In the proceedings Aspermont is also claiming damages from Mr Stephen Miller, a director of Strata, for misleading conduct contrary to section 10 of the Fair Trading Act 1974 (WA).
The company has brought to account the amount of $600,000 as revenue during the financial years ending 30 June 2004 and 30 June 2005 in relation to agreements reached with Strata Mining Corporation Limited (“Strata”). The company has received $75,000 in part payment of this amount and the balance remains the subject of Federal Court proceedings for recovery.
If the company is unsuccessful in its claims against Excalibur U.K, and Excalibur, the company may have to reverse the remaining balance of $525,000 previously recorded as income and recorded as a current receivable in this financial report. This would result in a reduction of both net profit and net assets by $525,000 in the financial period in which the claims are judged unsuccessful.
The directors are of the opinion that the matter will be resolved favourably and the company is hardened in its resolve to seek a commercial outcome.