ASX-listed copper-gold company Indophil Resources has advised that Xstrata has issued proceedings in the Supreme Court of Queensland in Australia, seeking an order for specific performance to enable it to become registered as the shareholder of those shares it acquired from Indophil in 2007 in Sagittarius Mines Inc. (SMI), the holder of the Tampakan copper-gold project in the Philippines.

The company has been applying for a tax ruling for that transfer which is a pre-condition to registration of Xstrata as the legal owner of those shares in the share register of SMI. Indophil has been seeking to avail of the exemption from capital gains tax on that transfer available under the Tax Treaty between the Republic of the Philippines and Australia.

Xstrata agreed to Indophil doing so. Now that Glencore has completed its merger with Xstrata, Glencore is seeking to perfect its title to the shares.

Meanwhile, Indophil said it has been in active discussions with Glencore management on a range of issues, adding that Indophil has been acting in good faith and operating on an agreed timeframe to respond on this matter later this week.

Glencore, and before it Xstrata, has held the beneficial interest and management rights in the project since 2007. Indophil contends there is no legal or commercial impediment to the conduct of business caused by the current status in regards to this matter and Glencore has not advised Indophil otherwise. This is a legacy issue from the Xstrata management era and is one of several that both Glencore and Indophil must now address.

Indophil has sought an explanation from Glencore as to how this misunderstanding occurred and how it might better facilitate communication within its organisation so that the focus can remain on progressing the issues that must be addressed.

Additional Reading?

Request Free Copy