Business
Four Mile Legal Ruling in favour of Ecora Upheld
Four Mile Legal Ruling in favour of Ecora Upheld.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n\n\n4 December 2023\n \nEcora Resources PLC\n(\"Ecora\", the \"Group\" or the \"Company\")\n \nFour Mile Legal Ruling in favour of Ecora Upheld\n \nEcora (LSE/TSX: ECOR) announces the Supreme Court of Western Australia, Court of Appeal has upheld the original, favourable, judgment by the Supreme Court of Western Australia in Ecora's legal dispute with Quasar Resources Pty Ltd. (\"Quasar\"), the owner and operator of the Four Mile uranium mine over which the Group has a 1% net smelter return (\"NSR\") royalty.\n \nEcora and Quasar have been engaged in a legal dispute since 2016 over the level of allocable charges being applied to calculate NSR revenue subject to the Group's royalty entitlement. On 13 April 2022, the Supreme Court of Western Australia ruled in favour of the Group's position that no costs incurred at the mine or at the Beverley plant, should be applied as permitted allocable charges. On 1 December 2023, the Supreme Court of Western Australia, Court of Appeal upheld the original judgement. \n \nFollowing the initial ruling, the Group received a settlement payment of approximately A$6 million, plus interest, that has been held as deferred income and will be released to the income statement in Q4 2023.\n \nSince April 2022, the Group has also been receiving its NSR free of any deductions for extraction and processing, subject to the outcome of Quasar's appeal. The Group decided that it was prudent to accrue the amounts relating to the contested allocable charges. With the appeal having been upheld, the Group expects to release approximately A$2.3 million of accrued income in Q4 2023. \n \nA total of approximately A$9.3 million, including interest, is expected to be released to the income statement in Q4 2023. This does not impact on the Group's cash balances as these amounts have been received.\n \nFurthermore, the Group has been awarded its legal costs of both the trial and of the appeal, which will be assessed, if Ecora and Quasar cannot reach agreement.\n \nFor further information\n \n\n\n\n\nEcora Resources PLC\n\n\n+44 (0) 20 3435 7400\n\n\n\n\nGeoff Callow - Head of Investor Relations\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nWebsite: \n\n\nwww.ecora-resources.com\n\n\n\n\n\n\n\n\n\n\n\n\nCamarco\nGordon Poole / Owen Roberts / Elfie Ken...