Drill rig battle drags on

 The fight over the GT3000 drill rig has heated up as Strange Investments seeks a court order to take possession of the rig.

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.

The injunction will be heard tomorrow.

In the mean time, Strange Investments is reportedly seeking to stop Coretrack from selling or dealing with the GT3000.

It has also included two other items of equipment in its claim for injunctions – a rod handling unit, and a spare set of tracks attached to the rig’s base.

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."

At 31 January, Globe Drill had approximately $16.3 million in assets, including the $5 million rig.

This is not the first battle Strange and Coretrack have had over the rig.

Strange had previously offered to dry hire the GT3000 rig for a drilling contract he was working on in Slovakia.

Coretrack agreed to dry hire the rig to Strange, but did voice its disappointment that Strange had not sought the contract on its behalf.

However, the drilling company soon discovered that the company Strange was hiring the rig to had only just set up, paid only $2 for the rig, and had only one director and shareholder – Strange’s son.

Coretrack stated that it required a guarantee to protect its asset, and claims that Strange reused to provide one.

 

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