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Venus Metals commences Supreme Court proceedings regarding Penny West acquisition

VMC alleges breaches of fiduciary duty, breaches of confidence and misuse of information that the company provided.

Venus Metals Corporation Ltd - Venus Metals commences Supreme Court proceedings regarding Penny West acquisition
Proceedings have been commenced against Spectrum Metals Ltd

Venus Metals Corporation Limited (ASX:VMC) has commenced proceedings in the Supreme Court of Western Australia in relation to Zebra Minerals’ acquisition of the Penny West Gold Project.

The proceedings are against Spectrum Metals Ltd (ASX:SPX), DJ Carmichael Pty Limited, Paul Adams and Davide Bosio, as well as Spectrum’s wholly-owned subsidiary Zebra Minerals Pty Ltd.

VMC alleges breaches of fiduciary duty, breaches of confidence and misuse of information that the company provided to Mr Bosio and Mr Adams of DJ Carmichael in July and August 2018.

Shares up 45%

The company’s shares were up more than 45% to an intra-day high of 24 cents.

Venus Metals managing director Matthew Hogan said, “The Venus Metals Board has carefully considered the best interests of shareholders before initiating this litigation and will request that the Court hears the matter at the earliest opportunity.”

Company statement

In a company statement, Venus Metals wrote: “The information provided to Mr Bosio and Mr Adams included information about Penny West and the company’s proposed acquisition of Penny West.

“The company provided the information to Mr Bosio in his capacity as a director of DJ Carmichael and to Mr Adams in his capacity as ‘Technical Adviser’ to DJ Carmichael. Venus Metals and DJ Carmichael signed a Confidentiality Deed. At that time, both Mr Bosio and Mr Adams were also directors of Spectrum.

“Spectrum, including Mr Adams, then undertook negotiations to acquire Penny West and Spectrum announced that it had entered into an agreement to acquire Penny West in October 2018.

“The company claims a constructive trust over Penny West, such that Penny West is held for the benefit of Venus Metals and its shareholders, alternatively that the other parties account to Venus Metals for the benefits they have obtained and damages.

“It is not possible at this time to quantify the level of damages that might be recovered; damages awards can be impacted by many factors.”

Venus stated that there could be no guarantee of the outcome of proceedings which were now before the Supreme Court of Western Australia.

Spectrum response

In a subsequent response, Spectrum Metals said: "Based on the content of VMC’s announcement, SPX considers that the allegations made are without merit and intends to vigorously defend the proceedings. SPX will seek to expedite the hearing of the proceedings.

"SPX is also considering any counterclaim it may have against VMC including in relation to the circumstances in which the proceedings have been commenced.

"SPX will continue its exploration program in relation to Penny West."

Quick facts: Venus Metals Corporation Ltd

Price: 0.19 AUD

ASX:VMC
Market: ASX
Market Cap: $22.65 m
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