LONDON (Alliance News) - Strategic Natural Resources PLC said it has agreed with London Commodity Brokers to adjourn its winding up hearing, which was supposed to take place Monday, for one week.
The natural resources development company said it continues to hold discussions with London Commodity Brokers after, in March, the group asked for Strategic Natural Resources to be wound up amid disputes and claims which have led to two separate legal battles.
In April, the company said it remains in discussions with London Commodity Brokers and its major creditors regarding amounts owed to London Commodity Brokers for an offtake agreement with Trasteel International SA, but that it expected the winding up petition to be heard by the Company's Court in London on Monday unless some form of settlement could be made.
The petition claims USD1.15 million for what London Commodity Brokers claims are unpaid contractual agreements, alleged to have been put in place with Trasteel International SA in 2011.
In April 2011, Strategic Natural Resources signed an exclusive coal off-take agreement with Trasteel, 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 Resources 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".
On Monday, the company also said that it remains in advanced discussions with a potential investor in order to solve some of its financial woes and hopes to soon be able to finalise a fundraising deal.
However, Strategic Natural Resources said that there can be no guarantees that the deal will go ahead and maintained its position that if it cannot raise the funds it will need to take steps to protect the interests of its creditors.
Strategic Natural shares were down 11% to 5.45 pence, putting it in the top-ten AIM ALL-Share fallers during early trading Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.