Western Areas NL assured its shareholders in a statement yesterday that the court case concerning two of its directors would not affect their rights or the company’s assets.
The Supreme Court of Western Australia last week ruled that Western Areas NL chairman Terry Streeter and fellow director David Cooper had turned the profitable Forrestania nickel prospect away from unrelated company Western Areas Exploration (WAE) in 2000.
Streeter and Cooper were directors at WAE at the time, but instead used the prospect to float Western Areas NL.
Justice Eric Heenan ruled that the directors of WAE could recover up $65 million in lost profits.
According to Western Areas NL, the judgement affects approximately 10.7 million Western Areas NL shares owned by Streeter and 400,000 shares owned by Cooper.
“The decision does not affect the ownership of any of Western Areas NL’s assets or tenements, the number of shares on issue, or the rights of any other shareholders,” the company said.
“For clarity, Western Areas NL was not a party to the court case and WAE is not related to Western Areas NL in any way.”
The company now operates the Flying Fox Nickel Mine at the Forrestania prospect.
Streeter has instructed solicitors to provide advice on an appeal.
The directors of WAE launched legal action against and Streeter and Cooper in 2006.