Chinese partner wants Jervois $1m returned
MATHEW MURPHY
December 7, 2009
RESOURCES junior Jervois Mining has been issued with a writ by the Chinese company with which it was to advance its NSW nickel laterite project, asking it to repay a $US1 million ($A1.1 million) advance.
Jervois, at present the subject of a probe by Australia's corporate regulator, has been embroiled in claims of market manipulation, related-party transactions and misleading shareholders.
In a statement to the market, Jervois managing director Duncan Pursell said China Rail Resources was seeking $US1 million it paid to Jervois to help build a processing plant in return for an 80 per cent stake in the nickel project.
''As previously announced, Jervois disputes the basis of China Rail Resources' claim and has referred the matter to its legal advisers,'' he said.
Mr Pursell had previously told BusinessDay that the Chinese state-owned company watered down its proposed investment.
''They signed a frame agreement and when it came to the crunch for the second agreement they tried to blackmail us into doing something that wasn't fair,'' Mr Pursell said in April.
Shares in Jervois yesterday fell 1¢ to 5¢ on turnover of almost 145 million shares.
Rebels who failed in an attempt to oust Mr Pursell in April are expected to try again.
The matter regarding the Chinese investment will be heard in the Supreme Court of Victoria.
