Ecora Resources PLC Four Mile Legal Ruling in favour of Ecora Upheld (4874V)
04 Dicembre 2023 - 8:00AM
UK Regulatory
TIDMECOR
RNS Number : 4874V
Ecora Resources PLC
04 December 2023
4 December 2023
Ecora Resources PLC
("Ecora", the "Group" or the "Company")
Four Mile Legal Ruling in favour of Ecora Upheld
Ecora (LSE/TSX: ECOR) announces the Supreme Court of Western
Australia, Court of Appeal has upheld the original, favourable,
judgment by the Supreme Court of Western Australia in Ecora's legal
dispute with Quasar Resources Pty Ltd. ("Quasar"), the owner and
operator of the Four Mile uranium mine over which the Group has a
1% net smelter return ("NSR") royalty.
Ecora and Quasar have been engaged in a legal dispute since 2016
over the level of allocable charges being applied to calculate NSR
revenue subject to the Group's royalty entitlement. On 13 April
2022, the Supreme Court of Western Australia ruled in favour of the
Group's position that no costs incurred at the mine or at the
Beverley plant, should be applied as permitted allocable charges.
On 1 December 2023, the Supreme Court of Western Australia, Court
of Appeal upheld the original judgement.
Following the initial ruling, the Group received a settlement
payment of approximately A$6 million, plus interest, that has been
held as deferred income and will be released to the income
statement in Q4 2023.
Since April 2022, the Group has also been receiving its NSR free
of any deductions for extraction and processing, subject to the
outcome of Quasar's appeal. The Group decided that it was prudent
to accrue the amounts relating to the contested allocable charges.
With the appeal having been upheld, the Group expects to release
approximately A$2.3 million of accrued income in Q4 2023.
A total of approximately A$9.3 million, including interest, is
expected to be released to the income statement in Q4 2023. This
does not impact on the Group's cash balances as these amounts have
been received.
Furthermore, the Group has been awarded its legal costs of both
the trial and of the appeal, which will be assessed, if Ecora and
Quasar cannot reach agreement.
For further information
Ecora Resources PLC +44 (0) 20 3435 7400
Geoff Callow - Head of Investor Relations
Website: www.e cora-resources. com
Camarco
Gordon Poole / Owen Roberts / Elfie Kent +44 (0) 20 3757 4997
About Ecora Resources
Ecora Resources is a leading royalty company focused on
supporting the supply of commodities essential to creating a
sustainable future.
Our vision is to be globally recognised as the royalty company
of choice synonymous with commodities that support a sustainable
future by continuing to grow and diversify our royalty portfolio in
line with our strategy. We will achieve this through building a
diversified portfolio of scale over high quality assets that drives
low volatility earnings growth and shareholder returns.
The mining sector has an essential role to play in the energy
transition, with commodities such as copper, nickel and cobalt -
key materials for manufacturing batteries and electric vehicles.
Copper also plays a critical role in our electricity grids. All
these commodities are mined and there are not enough mines in
operation today to supply the volume required to achieve the energy
transition.
Our strategy is to acquire royalties and streams over low-cost
operations and projects with strong management teams, in
well-established mining jurisdictions. Our portfolio has been
reweighted to provide material exposure to this commodity basket
and we have successfully transitioned from a coal orientated
royalty business in 2014 to one that by 2026 will be materially
coal free and comprised of over 90% exposure to commodities that
support a sustainable future. The fundamental demand outlook for
these commodities over the next decade is very strong, which should
significantly increase the value of our royalty portfolio.
Ecora's shares are listed on the London and Toronto Stock
Exchanges (ECOR) and trade on the OTCQX Best Market (OTCQX:
ECRAF).
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