- The Supreme Court of Western Australia approves the transfer of Allegiance Mining to Mallee Resources (MYL)
- Mallee submitted a deed of company arrangement (DOCA) proposal back in February in a bid to take over Allegiance and acquire its Avebury nickel sulfide mine in Tasmania
- While MYL expected to only take a matter of weeks to formally execute the DOCA, a shareholder of Dundas Mining, Allegiance’s parent company, objected to the transfer.
- With the court ruling in MYL’s favor, it now needs shareholder approval before the acquisition is finalized
- Mallee shares have been suspended since January 2021 and last traded at 70 cents
The Supreme Court of Western Australia has approved the transfer of Allegiance Mining to Mallee Resources (MYL).
Allegiance is a subsidiary of Dundas Mining and operates the Avebury nickel sulfide mine in Tasmania.
Back in February, Mallee submitted a deed of company arrangement (DOCA) proposal to the administrators of Allegiance, Richard Tucker and John Bumbak of KordaMentha, to take over the company.
The proposal was made together with Hartree Metals, the sole secured creditor of Allegiance.
The deal was subject to shareholder approval, as well as to the Supreme Court of Western Australia granting the deed administrators of Allegiance leave for the transfer of all the issued capital in Allegiance to MYL.
While MYL is expected to only take a matter of weeks to formally execute the DOCA, a shareholder of Dundas Mining objected to the administrators’ application to the court, claiming the deal would unfairly prejudice the shareholders of Allegiance, being Dundas.
Now, Mallee has come out on top, with the court approving the orders to transfer the shares.
MYL Managing Director John Lamb thanked the company’s legal advisers, who he said had worked hard to overcome “challenges” and navigate the legal proceedings to a successful conclusion.
In a statement to shareholders, Mr Lamb said the ruling was an “excellent outcome” for MYL.
The company still requires shareholder approval to complete the acquisition, which it will seek at an extraordinary general meeting on June 29.
Mallee shares have been suspended since January 2021 and are unable to resume trading as the ASX has directed that MYL first requires a new project in order to satisfy ASX listing rule 12.1.
Shares last traded at 70 cents.