Coretrack forced into asset sell off

Drilling company Coretrack will be holding an auction to sell off Globe Drill assets as the legal battle with Strange Investments continues.

 Drilling company Coretrack will be holding an auction to sell off Globe Drill assets as the legal battle with Strange Investments continues.

It has carried out a number of open days at its Bibra Lake facility to gauge interest in $11 million worth of its drilling equipment and workshop assets, the company says.

The auction comes after a bitter legal battle with former partner Strange Investments over ownership of the GT3000 drill rig.

It comes after the drilling company received notice from licensor Strange Investments that its IP licence agreement regarding the manufacture and use of the drill rig has been terminated.

Strange stated that the driller had breached its IP licence by "fitting improvements or accessories to the GT3000 drill rig for the Newcrest Telfer contract without seeking permission, and using the rig at Telfer without agreement from Strange.

According to Strange it was at this point that Coretrack fitted the "improvements" to the rig.

However Coretrack refuted this, stating that many of the items fitted to the drill rig (which Strange has used to terminate the IP agreement) were either repairs and maintenance items or necessary to fix a problem or overcome a lack of capacity, power, or capability

"Some of the items that were relied upon for the termination of the IP licence agreement were nothing more than minor items such as the installation of a safety handrail that was fitted for the safety of the rig staff and the replacement of the a small worn hydraulic fitting and worn air hose."

Regarding Strange’s second claim over using the rig at Telfer with a prior agreement, Coretrack stated it was "unaware of the use of the rig for that contract as being contrary to any ‘agreement’ ", and disputed the need to consult Strange in regards to undertaking work.

The two parties met earlier this month to discuss custody of the rig after Strange sought a court order to gain possession of the GT3000.

The court found that the Coretrack will retain custody of the rig for now, but will refrain from selling, offering for sale, modifying or dealing in any way with the drill rig, and the rod handler and tracks that are attached to eh secondary rig platform.

It also ordered Strange Investments to post a security of $50 000 for costs in case the legal action fails.

Coretrack has previously stated that the legal action could force it divest Globe Drill.

The auction is scheduled for 27 March.

 

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