www.churchillmining.com
Churchill Mining PLC is an AIM listed (CHL) mining company with a significant thermal coal development project located in the East Kutai Regency of Kalimantan, Indonesia, where to date more than 2.73 billion tonnes of coal resource has been defined to JORC standard. The project feasibility study has been completed, indicating an economic and desirable project and the study forms the platform for the next stage in the development of the Project. In addition to the East Kutai Coal Project, Churchill has interests in the Sendawar Coal Bed Methane Project in East Kalimantan, Indonesia and a strategic holding in Spitfire Resources, who are developing the South Woodie Woodie Manganese Project in Western Australia.
Churchill Mining updates on legal dispute with Ridlatama Group members
Churchill Mining (LON:CHL) this afternoon gave investors an update on its dispute with members of the Ridlatama Group.
The dispute relates to alledged breaches of the 2008 investors agreements, it said.
The agreements are between Churchill's subsidiary, PT Indonesia Coal Development (ICD), and members of the Ridlatama Group.
Churchill said that ICD has received two letters from Ridlatama Group companies, PT Investmine Nusa Persada (INP) and PT Investama Resources (IR), which claim that ICD failed to make initial purchase payments.
As a result INP and IR were seeking to unilaterally terminate the Investors Agreement with ICD, it added.
However Churchill said that ICD categorically denies the allegations made and says that all payments due for the purchase of its interest in these companies have been made in full, pursuant to the terms of the Investors Agreement.
“ICD has also referred the two letters received from INP and IR to its solicitors in Indonesia and Singapore and received advice that the INP and IR letters have no legal merit and are ineffective,” Churchill said.
“Accordingly ICD will take whatever action it deems necessary to fully protect its legal rights in this matter.”
Churchill explained that the IR license holds approximately 6.8 per cent of the JORC resource within the East Kutai coal project and no resources have to date been identified on the INP license.
Additionally the company said that it is continuing with the unlawful act claims against Mr Rinaldi in Indonesia in addition to arbitration proceedings in Singapore against other members of the Ridlatama Group for breaches of the investors agreements.
