The long-running legal dispute between Zuleika Gold Limited (ASX: ZAG) and Catalyst Metals Limited’s (ASX: CYL) subsidiaries, Vango Mining Limited and Dampier (Plutonic) Pty Ltd (collectively, Catalyst Entities), has reached a critical juncture, with the Supreme Court of Western Australia scheduling trial dates in October to determine the quantum of damages owed to Zuleika.
The litigation centres on Zuleika’s interest in Mining Lease 52/183 — covering the K2, K1, and PHB-1 gold deposits — and the contiguous K2 Area, both of which are key assets in Catalyst’s Plutonic gold project in the Murchison region of Western Australia.
These tenements have been highlighted in Catalyst’s recent investor presentations as central to the future of the Plutonic project.
The dispute arises from a 2017 joint venture agreement (the BTS Agreement) between Zuleika and the Catalyst Entities. In March 2022, the Supreme Court found that the Catalyst Entities had wrongfully repudiated the agreement, preventing Zuleika from earning up to a 50 per cent beneficial interest in the Tenement and K2 Area.
The Catalyst Entities’ appeal against this decision was dismissed in May 2024, confirming Zuleika’s position.
Zuleika is now seeking significant damages, including compensation for the lost opportunity to earn up to a 50 per cent interest in the key gold assets, $6 million in unpaid entitlements under the Sale Agreement and Royalty Deed, legal costs, and the transfer of its confirmed 4.1 per cent beneficial interest in the Tenement and K2 Area.
Zuleika’s executive chair, Annie Guo, welcomed the listing of the trial after five years of legal proceedings, stating: “It has taken five long years to get to this stage but, on behalf of and for all Zuleika shareholders, I am pleased we can finally present to the Supreme Court the significant opportunity lost to us when the Catalyst Entities breached Zuleika’s rights under the BTS Agreement.
“This includes denying Zuleika’s immediate beneficial interest in 4.1 per cent of the Tenement and K2 Area, and therefore 4.1 per cent of the underlying gold resource, and denying Zuleika the opportunity to earn in up to a 50 per cent interest in the Tenement and K2 Area in alignment with the terms of the BTS Agreement.
“We long ago identified the potential and prospectivity of the Tenement and K2 Area and are not surprised that, today, they are earmarked to underpin the future of the Plutonic Gold Project.
“The Court has already confirmed that Zuleika was denied its rights under the BTS Agreement — and dismissed the Catalyst Entities’ appeal — so Zuleika’s focus now is to ensure we receive fair value for what is owed to us.
“Zuleika will provide further updates as this long-running litigation finally reaches its conclusion.”
With the appeal process concluded and the trial dates set, Zuleika intends to vigorously pursue its claim for damages and associated entitlements.
The company has indicated it remains open to discussions with Catalyst but is prepared to see the matter through in court if necessary.
The outcome of the October trial will determine the financial compensation Catalyst Entities must pay Zuleika, potentially impacting the future development of the Plutonic gold project and the interests of both companies’ shareholders.
The trial is set for October 15, 20, 21, 22, and 23, 2025.
