27th Mar 2014 12:03
LONDON (Alliance News) - Strategic Natural Resources PLC shares tumbled Thursday after it said it had received notice from London Commodity Brokers asking for the company to be wound up.
The natural resources developer operating in South Africa said lawyers from the London Commodity Brokers filed a winding up petition on Wednesday, claiming an amount of USD1.15 million regarding contractual arrangements with Strategic Natural Resources.
Strategic Natural Resources shares were down 46.0% to 3.51 pence, making it the top AIM faller Thursday.
Strategic Natural said the contractual arrangements are alleged to have been put in place in the Trasteel off-take agreement announced in April 2011. The company said it disputes the claims and has been in discussions with the London Commodity Brokers concerning the amount due and settlement terms.
Strategic Natural said it is disappointed that a winding up petition has been filed but remains optimistic that a settlement can be reached.
It added that in the event that it is unable to successfully contest the winding up petition or reach an agreement with the London Commodity Brokers then it will have to take steps to protect the interests of its creditors.
The company said the winding up petition is due to be heard at the companies Court on May 12.
In April 2011, Strategic Natural Resources signed an exclusive coal off-take agreement with Trasteel International SA, a steel supplier and commodity trader, for all the beneficiated coal to be mined from Strategic Natural's Elitheni coal mine in the Eastern Cape of South Africa up to an initial 2.0 million tonnes.
At that time, Strategic Natural had said the finalisation of the contract was the result of "many discussions with various parties introduced to SNR by their appointed coal brokers, London Commodity Brokers".
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SNRP.L