LONDON (Alliance News) - Shares in Strategic Natural Resources PLC surged by more than a quarter Monday, after it said that the winding-up petition filed by London Commodity Brokers has been dismissed, following its settlement of the agreed amounts due.
Strategic Natural Resources shares were up 26% at 4.40 pence Monday early afternoon.
The natural resources development company, which indirectly owns 74% of Elitheni Coal (Pty) Ltd, had been holding discussions with London Commodity Brokers after LCB in March 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, which operates in South Africa, 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.
The petition claimed USD1.15 million for what London Commodity Brokers claimed were unpaid contractual agreements, alleged to have been put in place with Trasteel International SA in 2011.
Earlier this month, Strategic Natural Resources said it had agreed to amend the settlement terms with London Commodity Brokers, so that the sum of GBP60,000 of the second settlement was paid on June 3, and the remaining balance of GBP90,000 will be paid on June 12. It also said that it had agreed, for commercial reasons, to issue 3.5 million new London Commodity Broker shares in Strategic Natural Resources, rather than the 1.67 million shares originally agreed on May 13.
In a statement Monday, the company said that London Commodity Brokers has now dismissed the winding up petition, following Strategic Natural Resources settlement of the agreed amounts due to London Commodity Brokers.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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