Coretrack has maintained custody of the GT3000 drill rig as its legal battle continues.
Former business partners Coretrack and Strange Investments met last week in Western Australia’s Supreme Court to agree to a set of orders pertaining to the drill.
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 within the next week for legal costs in case the legal action fails.
Earlier this month Coretrack began legal action against Strange Investments over the IP of the GT3000 drill rig.
It came after the drilling company received notice from licensor Strange Investments that its IP licence agreement regarding the manufacture and use of the drill rig had 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 Coretrack, Strange Investments has now applied for an interim injunction that would allow it to take the GT3000 drilling rig.
The drilling company stated that the rig itself "and all other equipment is owned and paid for by our shareholders" apart from one item patented to Strange Investments.
Coretrack declined to state what item this is.
Currently Strange is attempting to use a clause in the IP agreements to ‘deliver’ the rig to Strange in the case of its termination.
However the drilling company contends that an obligation to ‘deliver’ the rig does not constitute a change of ownership, which prevents Strange from using it commercially.
Coretrack is also aiming to pursue Strange Investments for loss of earning and damages through the courts.
"As a result of these actions we now have to immediately downsize Globe Drill and commence hiring out (either directly or by way of joint venture) or selling of our drilling and workshop equipment," the drill said.
The court will reconvene on the case tomorrow.