The article below from MiningNews makes for interesting...

The article below from MiningNews makes for interesting reading.

The funder would have got the $6 million from the Barnes settlement plus the costs.

It seems like Cape Lambert funds were to payout out the Funder the balance of what he is owed and it seems like Funder doesnt like it one little bit.

Maybe this is why Glyna was always so confident about what CHM was to get as the funder was looking to settle and CHM didnt want to setttle. Funder happy to lock away a profit. Sage has been quoted in the press as saying that there had been talk of settlement but doesnt want cash but wants interest in Jack Hills.

With the funder out of the way then CHM can wait for judges decision. Friday now a key date as it will be seen if CHM can just write a cheque out and get rid of funder.

This story has so many twists and turns ...

Chameleon in shock receivership stoush

Nick Evans
Wednesday, 11 August 2010

CHAMELEON Mining?s former litigation funder has thrown a minor spanner into the works of the company?s recapitalisation deal with Tony Sage?s Cape Lambert Resources, with a Singapore-based litigation funder apparently trying to appoint a receiver over the company?s head.



Chameleon entered a trading halt this morning after the Australian Securities Exchange queried the status of the company.

Chameleon confirmed it was aware that International Litigation Partners has apparently appointed a receiver over the company, though managing director Anthony Karam told the ASX that Chameleon has had no direct contact with ILP over the matter.

ILP had been backing the legal costs of Chameleon?s claims against Murchison Metals, and at one point held a $20 million fixed and floating charge over Chameleon?s assets, as part of the legal funding deal, according to media reports last year.

MiningNews.net understands ILP was sacked by Chameleon this week, after Cape Lambert agreed to extend the company a $6.5 million credit facility and take part in a $2.5 million equity raising.

The move to sack ILP comes only weeks before an expected decision in the Murchison case, which could see the company wind up with Murchison?s share in Crosslands, the vehicle that holds Murchison?s Mid West iron ore tenements via a joint venture with Japanese company Mitsubishi.

While the news was enough to send Chameleon into a trading halt today, Karam said in his response to the ASX this morning that he expected the move to appoint a receiver over Chameleon would be immediately dismissed in a court hearing.

Speaking to MNN this morning, Sage also dismissed the move, saying it would not have any impact on Cape Lambert?s decision to invest in Chameleon.

?I don?t think [ILP] can appoint a receiver ? [Chameleon] has $9 million in the bank,? he said.

?Even if the litigation funder is owed $6 million, $7 million or whatever, there?s still money to cover it ? there was a million in the bank, and we put in a combination of $9 million, so I can?t see how it was ever thought the company was in receivership territory,? he said.

?It seems to me to be an act of someone who is pretty upset and it will quickly pass, I think.

?I can?t see how any judge would say the company needs to be put in receivership when you?ve got plenty of money in the bank to pay off all of your debts.?

MiningNews.net tried to seek comment from Chameleon for this story, but had not been able to contact the company before our deadline.