Australia's Sierra Rutile tumbles after court freezes unit's bank accounts

Sierra Rutile Holdings

14/03/2023 02:46

** Shares of Sierra Leone-focused mineral sands firm Sierra
Rutile Holdings  SRX.AX  slide as much as 6.9% to A$0.2375,
posting their biggest intraday pct drop since Jan. 25
    ** Co says operating unit's bank accounts in Sierra Leone
have been frozen by court order 
    ** Funds from frozen bank accounts will be released to meet
legal obligations to Transcend International Resources Ltd,
which obtained a court order for Sierra Rutile to pay $3.2 mln
plus interest 
    ** Transcend alleges Sierra Rutile improperly handled and
damaged certain equipment; cos have been embroiled a legal case
since at least 2021 
    ** Sierra Rutile's appeal against the judgement yet to be
heard
    ** Co says even if the appeal is successful, recovery of
funds may prove difficult as Transcend is a Chinese entity with
no major assets in Sierra Leone
    ** SRX hits lowest level since March 3
    ** Trading volumes 3.5 times the 30-day average, with more
than 8 mln shares traded so far in the day
    ** As of last close, stock up 13.3% YTD

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))