Gulf Manganese Corp. Ltd. and Mighty River International Ltd. agreed to settle all their outstanding claims and dismiss a prior legal action.
Mighty River started proceedings in November 2017 against Gulf in the Supreme Court of Western Australia, alleging that the latter failed to meet its obligations under an October 2013 agreement for the acquisition of Mighty River's shares in Asia Mineral Corp. Ltd.
According to the claim, Gulf failed to settle the sale shares and was claiming A$1.40 million plus interest.
As part of the settlement, Gulf will issue to Mighty River 100.0 million shares and 100.0 million listed options, it said Dec. 24.
Mighty River also agreed to a cash subscription of 20.0 million Gulf shares at 1.5 Australian cents, with 20.0 million free attaching listed options at 0.5 cent.
The first A$150,000 under the deed of settlement for the subscription was paid Dec. 21, and the remaining A$150,000 is due on Jan. 15, 2019.
Additionally, Gulf said it is close to concluding the restructuring of the convertible notes held by PT Jayatama Global Investindo.
The company previously entered a series of transactions with Jayatama and related entities to fund up to about A$15 million to build and commission the first two smelters at its Kupang smelting facility in West Timor, Indonesia.