Troubled Blumont sued by Australian miner over scrapped investment plans

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.

Shares of Blumont ended 0.4 cent lower today at 10.7 cents.