Wmc Launches Savage Attack

Sydney Morning Herald

Friday March 5, 1993

Bruce Hextall

Savage Resources Ltd's battle with Western Mining Corp Holdings Ltd over the ownership of the rich Ernest Henry copper deposit near Cloncurry, Queensland, escalated yesterday when WMC launched a new legal attack.

The big Melbourne-based group and its Sydney-based joint venture partner, Hunter Resources Ltd, said actions had started in the Supreme Court of Queensland seeking a declaration that the mining lease containing the deposit was void.

WMC claims Savage failed to mark out the lease in the prescribed manner and/or failed to accurately describe the land that was the subject of the application.

Savage's managing director, Mr Jim Wall, dismissed the latest attempt to gain control of the lease as an indication that WMC had become worried it would not be able to defend an action brought by Savage in the Supreme Court of NSW.

This action alleges that WMC and Hunter acted in a misleading way when the two companies struck an option agreement with Savage by obtaining data relating to the lease that should have been disclosed.

In essence, Savage alleges that representatives of the two companies trespassed on the lease before the signing of the agreement in 1990 and obtained geochemical data that indicated the extent of the deposit.

Savage is seeking to have the option agreement set aside as well as making a claim for damages and other relief. WMC and Hunter have said they will defend this action, which has been set down for a hearing in July.

Savage said last night that it had been advised to seek an order in the Supreme Court of NSW that the action launched by WMC yesterday was an abuse of process.

It said the latest proceedings did not introduce any new issues by WMC and did not affect the basis of Savage's case, which it intended to pursue vigorously.

© 1993 Sydney Morning Herald

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