Ann: Share Purchase Plan - Extension of Closing Date, page-3

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0	The Advertiser, Edition Advertiser	SAT 04 OCT 2014, Page 77​

The right Royal row brewing in court ​

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By: CAMERON ENGLAND

LAWSUIT has been lodged that could end up in a dispute over Royal Resources' ownership of iron-ore exploration rights in the state's east.

But Royal managing director Marcus Flis said the company had done extensive due diligence when it purchased the Razorback project from companies associated with the former State Parliamentary speaker Peter Lewis. The company said it was confident of ownership rights.

Mr Flis said the instigator of the claim, John Hillam, had a personal issue with Mr Lewis and unsuccessful claims had been lodged in the past. Courela Minerals, a company associated with Mr Hillam, has filed an originating process in NSW seeking to bring an action against Mr Lewis, his companies Goldus and Mintech Resources, and a man named James Chu.

Goldus and subsidiary Mintech Resources sold the rights to the Razorback iron ore deposit to Royal in 2009. At the time, the Razorback deal was worth $30 million. However, some former Goldus shareholders have claimed Mr Lewis had no right to sell the deposit.

As a result, in January 2013 Royal had threatened to take action over 'unsubstantiated rumours'' being put about. Royal is currently trying to raise money through a share- purchase plan to pay $2.6 million to Goldus and Mintech to finalise the purchase of the tenements.

It is understood that Goldus and Mintech have already been paid about $8 million.Royal shares were untraded on 3.4c yesterday.