Gold miner Empire Resources says it will oppose an injunction being sought in a West Australian court by its partner in the Penny’s Find gold mine northeast of Kalgoorlie.

Empire (ASX:ERL) said Brimstone Resources, which has a 40 per cent stake in the mine, has sought an injunction in the Supreme Court to prevent the company from taking action under the mortgage and security documents it has over Brimstone’s interest in the joint venture.

Empire said previously Brimstone owed it $1.1 million, which was due to be paid on June 6.

Brimstone made a part payment reducing the debt to $1.02 million, but did not pay the remainder, according to Empire.

“Empire has referred the matter to its solicitors who will oppose the grant of an injunction,” managing director David Sargeant told investors.

The promise to fight sent shares up 6.3 per cent to close at 1.7c on Thursday.

Empire Resources (ASX:ERL) shares over the past year.
Empire Resources (ASX:ERL) shares over the past year.

At the end of May, the company received a demand from a group of 12 shareholders who collectively hold a 5 per cent stake for Empire to call a meeting to vote out the current three-director board.

Empire chairman Lee Christensen said at the time that Paul Williams and Peter McDonald were associated with some of the shareholders and were also the directors of Brimstone.

A hearing is yet to be scheduled by the court, but Empire says it is likely to occur within five business days.