Chameleon Mining called for a trading halt one day after it struck a deal with Tony Sage's Cape Lambert Resources to help keep it afloat.
The company will get a $6.5 million credit facility from the publicly listed Cape Lambert Resources. The company had called the halt on the trading of Chameleon Mining shares to clarify a mystery notification of the appointment of receivers.
Writing a letter to the Australian Securities Exchange Chameleon Mining mentioned that it had not been in communication with International Litigation Partners Pte Ltd or ILP regarding the purported appointment of receivers to Chameleon which is chaired by rugby league great Benny Elias.
The Singapore based ILP is helping to fund Chameleon Mining's legal battle with Murchison Metals. The dispute involves ownership of several iron ore rich tenements in the Mid West region including the Jack Hills iron ore project.
Chameleon claims that the asset was purchased by Murchison Metals using Chameleon's funds several years ago. It is valuing the assets at around $1.5 billion. ILP has reportedly taken out a $20 million charge over Chameleon's assets.