Eclipse Metals (ASX:EPM) has rejected a claim filed by Pioneer Resources Partners LLC in the Supreme Court of New South Wales over a disputed institutional investment agreement, according to a Tuesday filing with the Australian bourse.
The parties had signed an investment agreement in October 2023, under which Pioneer initially invested AU$800,000 in exchange for shares in Eclipse Metals, the filing said.
Under the agreement, the company had issued 93.2 million shares and made a cash payment of AU$556,640, the filing added.
Pioneer now claims an additional 198.5 million shares, while the company maintains that it has fully repaid its obligations with shares and cash.
Eclipse Metals said that it will "strongly defend itself against the court action" and has hired Blackwell Legal as its legal representative.
Shares of the company fell 17% in recent Tuesday trade.
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