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Indiana Resources Resolves Shareholder Dispute and Advances Strategic Focus

6 December 2023 12:48
ASX:IDA
Ntaka Hill Nickel Project

Indiana Resources Limited (ASX: IDA) has successfully resolved a longstanding dispute between the shareholders of Ntaka Nickel Holdings Ltd (NNHL), marking a pivotal moment for the Company. The resolution comes in the wake of funding challenges and arbitration proceedings, with the Australian Centre for International Commercial Arbitration (ACICA) playing a crucial role in facilitating the agreement.

Shareholder Dispute Settlement

The dispute primarily revolved around a funding call made to NNHL shareholders in October 2022, where Nachingwea UK Ltd (NUKL) and Loricatus Resources Investments (LRI) were the key players in the disagreement.

Indiana Resources confirmed the parties involved have reached an agreement, as confirmed in today’s announcement. As per the terms, LRI’s shareholding in NNHL will dilute from 30% to 18%, while NUKL’s shareholding will increase from 70% to 82%.

Importantly, each party will bear its own costs related to the arbitration proceedings.

Strategic Implications

This resolution brings clarity to the shareholding structure of NNHL, a development that Bronwyn Barnes, Executive Chairman of Indiana Resources, finds pleasing.

With the dispute behind them, the Company can now redirect its focus toward enforcing and annulment activities related to the arbitration against the United Republic of Tanzania.

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Figure 1: The post settlement shareholder structure

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Figure 2: The pre settlement shareholder structure

Looking Ahead

Beyond the legal matters, Indiana Resources remains committed to advancing its exploration endeavours.

Boasting a diverse tenement portfolio encompassing rare earths, gold, and base metals, Indiana strategically situates itself across 5,713 square kilometres in the Central Gawler Craton Province of South Australia, strategically positioned between the historical gold mining centres of Tunkillia and Tarcoola.

In line with its historical focus on gold, the Company is now preparing for a focused rare earth elements (REE) drilling program.

Bronwyn Barnes, Executive Chairman of Indiana Resources, expressed satisfaction at the resolution of the shareholder dispute ahead of the arbitration hearing, emphasising the newfound clarity in the shareholding structure of the Claimants.

“It is pleasing to have this matter resolved in advance of the arbitration hearing. There is now clarity around the shareholding structure of the Claimants although it should be noted that the Award may not necessarily be distributed between the Claimants in a manner that reflects underlying shareholdings,” she said.

“Finalising this dispute allows Indiana to now focus on enforcement and annulment activities relating to arbitration against the United Republic of Tanzania. Activities for this phase are significantly advanced, with plans for enforcement in place, and the Claimants well prepared for the ICSID hearing on 20th December 2023 with regards to annulment proceedings.”

IDA’s Australian Stock Exchange-listed share price is currently trading at $0.06 cents (12.45pm UTC+ 8 hours).

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