Troubled Blumont sued by Australian miner over scrapped investment plans
Published on Dec 2, 2013 8:40 PM
Singapore-listed Blumont Group, one of a trio of penny stocks that crashed in October, is facing additional woes.
The mining group is being sued by Australian miner Prospect Resources, over its decision to terminate a deal to invest A$3.9 million ($4.5 million) in the company.
On Oct 31, Blumont announced it was scrapping the deal as it was of the view that the Australian firm could not fulfil a critical condition: that of getting the paperwork done for Prospect Resources' acquisition of two gold projects in Zimbabwe.
Blumont, along with related companies Asiasons Capital and LionGold Corp, saw a meteoric rise in its share price for the first nine months of the year before its counter plummeted in October.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here