Caerus Mineral Resources plc said it was monitoring a dispute resolution between its portfolio company New Cyprus Copper P.A. Ltd (NCC)’s investee company and a shareholder.
INTERESTS
NCC owns a 90% interest in Treasure Development Ltd (TDL) in Cyprus and is also responsible for maintaining and progressing other Cypriot projects.
Australian-listed BMG Resources Ltd is the minority shareholder in TDL and retains a 10% interest.
AMENDMENT
Caerus said that BMG had notified NCC that the latter had defaulted on a A$2 million payment based on BMG’s interpretation of an amendment to the original share purchase agreement (SPA) between BMG , NCC and TDL from 2016.
This granted BMG a put-option for the acquisition of the balance 10% shares of TDL.
BMG expressed its interest in exercising the put-option and NCC confirmed it elected to revert to payment through a net smelter royalty on 4 July 2022.
Caerus added that the NCC board maintained that the intention behind the amendment dated 20 May 2021 was for NCC to retain its ability to elect to pay the balance payment via a net smelter royalty.
BMG has invoked the dispute resolution process with NCC under the original SPA, added Caerus.