Market Herald logo


Be the first with the news that moves the market
  • Venus Metals has launched legal action against Spectrum Metals and four other parties today
  • Venus claims there was a breach of confidence when Spectrum bought the Penny West Gold Project in 2018
  • Allegedly, Venus gave confidential information about its plans to buy the project to directors of Spectrum
  • Spectrum then used that information to buy the project itself
  • Venus Metals’ share price has skyrocketed over 40 per cent today, with shares reaching 24 cents each
  • Spectrum Metals has consequently entered a trading halt

Venus Metals has commenced proceedings in the Supreme Court of Western Australia against Spectrum Metals, its subsidiary Zebra Minerals, and three other parties.

Venus has claimed there have been breaches of fiduciary duty, confidence, and misuse of the information it provided to DJ Carmichael directors, Paul Adams and Davide Bosio, mid-last year. At that time, both David and Paul were also directors of Spectrum Metals.

David, Paul, and stockbroking firm DJ Carmichael are also subject to court proceedings.

The discussions with Paul and David included confidential information about the Penny West Gold Project and Venus’ proposed purchase of the project.

Venus and DJ Carmichael signed a Confidentiality Deed which was allegedly dishonoured.

Spectrum, including Paul, then undertook negotiations to acquire Penny West. Not long after, Spectrum announced an agreement to acquire the gold project in October.

Spectrum completed the acquisition of Penny West in December 2018. It now has a 100 per cent interest in the gold project.

Venus has claimed a constructive trust over Penny West, such that Penny West is held for Venus’ and its shareholders’ benefit.

“The Venus Metals Board has carefully considered the best interests of shareholders before initiating this litigation and will request that the Court hears the matter at the earliest opportunity,” Venus Metals Managing Director Matthew Hogan said.

The company has said it cannot yet say the level of damages awards that it might gain from proceedings as it can be impacted by many factors.

Venus will inform the market of further developments as they come.

Venus Metals’ share price has skyrocketed 42.4 per cent following today’s news. Shares are trading at 23.5 cents apiece as at 2:46 pm AEDT.

Consequently, Spectrum Metals has entered a trading halt. Its share price is up 10 per cent, with shares trading at 11 cents apiece.

VMC by the numbers
More From The Market Herald

" Calidus (ASX:CAI) confirms gold project is on schedule

Calidus Resources (CAI) believes its Warrawoona gold project in the Pilbara region of Western Australia could be Australia’s next gold producer.

" Orthocell’s (ASX:OCC) rotator cuff tendon treatment proves successful

Orthocell’s (OCC) latest study results have revealed OrthoATI is much more effective than steroid injection when treating rotator cuff tendinopathy with intrasubstance tendon
Dreadnought Resources (ASX:DRE) - Managing Director, Dean Tuck

" Dreadnought Resources (ASX:DRE) strikes more mineralisation at Orion

Junior explorer Dreadnought Resources (DRE) has announced another set of high-grade copper, silver, gold, cobalt, and zinc hits from its Tarraji-Yampi Project in

" Boss Energy (ASX:BOE) prepares for re-start of production at Honeymoon

Boss Energy (BOE) is progressing multiple work streams in preparation of the re-start of production at its Honeymoon uranium project in South Australia.