Proactive Investors - Ecora Resources PLC (TSX:ECOR) said the Supreme Court of Western Australia, Court of Appeal has upheld the original, favourable, judgment in its legal dispute with Quasar Resources, the owner and operator of the Four Mile uranium mine.
The two companies have been in dispute since 2016 over costs being applied in the calculation of Ecora’s 1% net smelter return (NSR) royalty over the mine.
On 13 April 2022, the Supreme Court of Western Australia ruled in favour of Ecora that no costs incurred at the mine or at the Beverley plant should be applied as permitted allocable charges, a judgement that the appeal court has now upheld.
As a result, Ecora will now release a settlement payment of approximately A$6 million, plus interest, from the original ruling in its fourth-quarter financial results.
A further A$2.3 million of accrued costs will also be released in the fourth quarter of 2023 to make a total of A$9.3 million (£4.8 million) including the settlement and interest.
Ecora added it had also been awarded costs for the original trial and appeal.