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Venus starts court proceedings against Spectrum on acquisition of Penny West

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Venus starts court proceedings against Spectrum on acquisition of Penny West

Venus Metals Corp. Ltd. started proceedings in the Supreme Court of Western Australia against Spectrum Metals Ltd. and CEO Paul Adams, DJ Carmichael Group Pty. Ltd. and CEO Davide Bosio, and Spectrum's unit Zebra Minerals Pty Ltd., which acquired the Penny West gold project in December 2018.

Venus claimed breaches of fiduciary duty, breaches of confidence and misuse of information that it provided to Adams and Bosio in 2018, regarding its own proposed acquisition of Penny West, despite the signing of a confidentiality deed.

At that time, both Adams and Bosio were directors of Spectrum, which undertook negotiations to acquire Penny West soon after and entered an agreement to purchase the property in October 2018.

The company added Oct. 10 that it is not possible to quantify the level of damages that might be recovered, as the award can be impacted by a number of factors.

In response, Spectrum said in a same-day release that the allegations are without merit and it intends to "vigorously" defend the proceedings, although the company has not been served with any as yet.

Meanwhile, Spectrum is trying to expedite the hearing of the proceedings, and is also considering any counterclaim it may have against Venus, while continuing exploration at Penny West.