Thomsons has acted for EMC Metals Corp (TSX:EMC) on an out of court settlement to its dispute with Jervois Mining Limited (ASX:JRV) in relation to the Nyngan Scandium project in NSW, Australia. The terms of the settlement transfer 100% ownership and control of the Nyngan Scandium project to EMC, in return for cash payments and a percentage royalty payable to Jervois on sales of product from the project.
Partner, David Gaszner and Senior Associate, Claire Gitsham acted on this assignment, providing strategic advice on both the resolution of the dispute and how EMC Metals Corp might ultimately achieve total ownership and control of the joint venture tenements.
“We’re extremely pleased with this outcome. EMC has resolved the litigation and achieved its commercial objectives and the firm has built a strong relationship with an exciting client that will move on to develop this world class project,” David said.
The binding settlement entered into with Jervois brings to an end all court actions, claims and counterclaims, including claims for damages and legal and other costs.
Highlights of Settlement:
- EMC obtains 100% of the Nyngan scandium property, rights and exploration tenements,
- EMC agrees to pay Jervois A$2.6M in cash, with completion no later than June 2014,
- Exploration tenements formally transfer on final payment, but EMC has the right to proceed with development and implementation of the project now,
- Jervois retains a production royalty on the Nyngan project of 1.7% of sales price for scandium and any other products produced from the site,
- The production royalty extends for a term of 12 years, from first production date,
- A minimum annual royalty applies, based on 10 tpa scandium production, and
- The settlement is subject to FIRB approval (EMC 100% ownership)
EMC Metals Corp is a specialty metals mining group. The company focuses on developing high-value specialty metal and mineral projects, by applying world-class extraction and recovery techniques.