A New York-based investor has sued Nimy Resources in the state's Supreme Court but the critical metals explorer says it will defend itself against the allegations.
A New York-based investor has sued Nimy Resources in the state's Supreme Court but the critical metals explorer says it will defend itself against the allegations.
Lind Global Fund, based in the United States, has recently lodged a writ in the Supreme Court of Western Australia, naming Nimy Resources as the defendant.
In the writ obtained by Business News, Lind Global claimed Nimy owed $3.7 million over a breach of a share subscription agreement the parties signed in 2023.
Nimy Resources confirmed it had been served with the writ, in an update to the market.
“The company has sought, and will continue to seek, legal advice in relation to this matter as it disputes the debt and intends to defend the action,” Nimy said in its statement.
“As this matter is the subject of litigation, the company does not intend to make any further comment at this time.
“The company will update the market on this matter as appropriate.”
Lind alleged, in the writ, that it agreed to subscribe to Nimy’s shares and to transfer advance payments as part of the 2023 agreement.
The writ said Lind advanced a total of $2.5 million to Nimy in 2023.
From December 2024 to early January, Nimy failed or advised Lind that it could not issue the subscription shares referenced in the latter’s notices, according to the writ.
In the writ, Lind alleged the breach meant Nimy defaulted on the agreement with the incident not capable of being remedied.
If an event of default occurs, interest shall be payable on the amount outstanding at a rate of 1.5 per cent per calendar month, which interest shall accrue daily until the defendant discharges the amount outstanding in full or remedies the default to the satisfaction of the plaintiff,” the writ read.
Lind claimed Nimy was obliged to pay 105 per cent of the subscription share values, being $3.7 million.
It is further alleged, in the writ, that Nimy failed or refused to pay the 105 per cent of subscription share value despite demand in March.
Shares in Nimy traded at 6.8 cents each, down 25.27 per cent at market’s close today.
