PERTH, Aug 13 AAP - Chameleon Mining NL says it expects its receivership, brought about by its litigation funder, will be lifted next week in a Supreme Court decision. The Singapore-based International Litigation Partners (ILP) on Wednesday moved to appoint an insolvency firm as external receiver to Chameleon. A Chameleon spokesman said ILP had alleged the mineral explorer had breached the terms of a $20 million fixed and floating charge secured by ILP over Chameleon last year, which prevented the Sydney-based Chameleon from granting security over its assets to a third party. Chameleon had allegedly committed the breach on Tuesday when it entered into a deal with Cape Lambert Resources Ltd. The strategic alliance between Chameleon and Cape Lambert would see Chameleon issue shares to Cape Lambert, which would arrange a credit facility of up to $6.5 million for Chameleon. Chameleon later on Wednesday obtained from the Supreme Court of NSW an injunction to restrain the receiver from acting, the Chameleon spokesman said. The spokesman said the receiver on Thursday submitted an application to dissolve Chameleon's injunction, "which failed on all counts". "The judge (Justice Clifford Einstein) said that these matters are urgent and must be dealt with on a final basis as soon as possible," the spokesman told AAP on Friday. "We're in court again next week, hopefully as early as next Tuesday to commence a final hearing, a determination of whether the receiver should be removed. "We're confident that we've got them covered." International Litigation Partners could not be immediately contacted for comment. Chameleon on Tuesday said in a statement that Cape Lambert's investment was an endorsement of Chameleon's decision to take a dispute with iron ore miner Murchison Metals Ltd over the Jack Hills iron ore assets in Western Australia to the Federal Court of Australia. That action is ongoing. Chameleon shares were suspended from trading on Wednesday pending an announcement and last traded at 2.3 cents. AAP rlm/shd/de
CHM Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
