Oz Minerals settles lawsuits

Finance

Publishing Date: 10 May 2011 5:00pm GMT
Author: Mining Journal

Oz Minerals Ltd has agreed to pay A$60 million (US$64.7 million) to settle lawsuits from two shareholders over incorrectly disclosed refinancing plans and debt levels.

The Australian company was sued for breaching its obligations to shareholders when during the economic downturn it listed current debt as a long-term debt in its 2008 half yearly report.

To settle the case, Oz Minerals has agreed to pay A$55.1 million plus costs of A$4.9 million, which are to be allocated between Maurice Blackburn and Slater & Gordon.

The payments will be made from the company’s cash reserves and will impact on its net profit in 2011, Oz Minerals said.

Neil Hamilton, Oz Minerals chairman, said: “The settlement of the class action is in no way an admission of any liability in respect of either of these cases but it is purely a commercial decision. In any litigation there is always the risk of an adverse finding irrespective of the strength of one’s legal case.

“Settling these claims allows the company to continue the business of building a successful copper-focused company without distraction of a court action over an extended period.”