FED:Chameleon receivership may be lifted PERTH, Aug 13 AAP -...

FED:Chameleon receivership may be lifted

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