Shares in Wilton Resources fell by 0.2 cents or 7.4% to 2.5 cents when it opened on the morning of June 27.
The drop came after the company announced, on June 27, that it had entered into a deed of settlement with Chong Thim Pheng and Ong Kok Heng. Under the deed of settlement, all parties agreed to a “full and final settlement” of the sale of shares in Wilton Resources’ subsidiary, PT Wilton Makmur Indonesia (PT WMI). Chong is the executive chairman of Hotel Re! Singapore while Ong is his son-in-law and the executive director of Euro Asia Asset Management.
On April 4, 2022, Wilton Resources announced that it had agreed to sell a 4.78% stake of PT WMI – or 742 million ordinary shares – to Chong and Ong for a cash consideration of $3.5 million or 37.1 billion rupiah.
A sale and purchase agreement (SPA) was signed between Wilton Resources and its wholly-owned subsidiary Wilton Resources Holdings (WRH), as well as Chong and Ong on March 29, 2022. The payment and disposal were fully completed on March 31, 2022.
Ong and Chong subsequently purchased more shares in PT WMI in June 2023 and November 2023 respectively.
On April 12, Chong sent a letter of demand to Wilton Resources alleging that the company was in default of the terms of the SPA as it did not have any commercial production of gold dore for the months of December 2023, January 2024 and February 2024.
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As such, he is asking that Wilton Resources return $2.7 million to him, which is the full amount of the sale consideration that he had paid under the November 2023 SPA, in exchange for his return of all the shares to the company.
The deed of settlement provided for the entry for and execution of two sale and re-purchase agreements between Wilton Resources, WRH and Chong. Under the first agreement, all parties agreed that WRH will transfer and credit a total of 700 million shares in PT WMI to Chong’s custodian account.
All parties also agreed that the deed of settlement supersedes and cancels all previous deeds and agreements made.
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In its statement dated June 27, Wilton Resources says the settlement was entered into “without any admission as to liability or wrongdoing” by the parties involved.
As at 11.31am, shares in Wilton Resources are trading 0.7 cents lower or 25.93% down at 2 cents.
