interesting article

Murchison's taxing time

WHAT'S the bet that the team over at Murchison Metals is feeling slightly nervous about its upcoming court case now that its star witness has been embroiled in a tax dispute?

Phillip Grimaldi, a mining industry figure and former director of Murchison, had assets worth more than $55 million seized this week, following an urgent request to the Federal Court by the tax office.

Unfortunately for Murchison, Grimaldi is a co-defendant in a court action brought by tiddler Chameleon Mining, which is claiming a right to some iron ore assets in Western Australia.

Chameleon is alleging that Grimaldi and fellow former director Greg Barnes used company funds to help Murchison buy the Jack Hills project in 2004.

The Federal Court, which is due to hear the case in August, has already heard how the evidence of Grimaldi and Barnes would be heavily relied upon by Murchison, given none of its current directors were around when the deal was struck.

While Murchison will argue that it has no case to answer, this isn't the first time one of its witnesses has had a scrape with the legal fraternity.

The Australian Securities & Investments Commission last year laid charges against Barnes for allegedly providing false and misleading information regarding Chameleon's 2003 float.

He is fighting the charges.

SOURCE: http://www.theaustralian.news.com.au/business/story/0,28124,25508581-5005200,00.html