Amara Minerals has taken a strategic legal step by filing a cross-claim against Great Divide Mining amid a GST indemnity dispute linked to Challenger Mines, intensifying a court battle that remains unresolved.
- Amara granted leave to file cross-claim against Great Divide Mining
- Cross-claim alleges misleading or deceptive conduct in settlement dealings
- Amara denies liability for GST indemnity related to Challenger Mines
- No trial date set; legal outcome remains uncertain
- Company reiterates focus on Victorian gold-antimony and Brazilian lithium projects
Legal Battle Escalates with Cross-Claim Against Great Divide Mining
Amara Minerals (ASX:AM3) has escalated its legal dispute with Great Divide Mining (ASX:GDM) by filing a cross-claim alleging that GDM engaged in misleading or deceptive conduct under key Australian corporate and consumer laws. The cross-claim, lodged in the Supreme Court of New South Wales, challenges the validity of settlement agreements reached between the parties in December 2025, which relate to an indemnity for a GST liability assessed by the Australian Taxation Office (ATO) against Challenger Mines Pty Ltd.
This development follows the court’s decision on 28 August 2026 granting Amara leave to amend its response and file the cross-claim, with procedural orders formalised on 31 August. Amara seeks declarations that would effectively unwind the prior settlement, while also attempting to hold Challenger liable for half of any indemnity payment Amara might be required to make, a claim that Challenger denies.
Ongoing Litigation with No Trial Date Yet
Amara continues to deny any liability under the indemnity and is preparing to defend the claim vigorously. The court timetable requires Amara to submit lay evidence supporting its cross-claim by 25 September 2026, with a directions hearing scheduled for 2 October. However, no trial date has been set, leaving the ultimate resolution and potential financial impact uncertain.
The company emphasises that the court’s grant of leave to file the cross-claim is procedural and does not indicate any judgment on the merits. The allegations remain untested, and Amara has committed to updating the market in line with its continuous disclosure obligations.
Exploration Focus Remains on Victorian and Brazilian Projects
Despite the legal proceedings, Amara Minerals continues to advance its mineral exploration portfolio. Its Lauriston Gold and Antimony Project in Victoria, acquired in 2025, is positioned next to the prolific Fosterville Mine and hosts high-grade discoveries such as the Comet zone, with drill intercepts including 8.0 metres at 104 grams per tonne gold.
The company also holds the Apollo Gold and Antimony Project in Victoria’s Melbourne Zone, noted for bulk-tonnage potential and antimony mineralisation similar to nearby notable deposits. Complementing these Australian assets is Amara’s lithium portfolio in Brazil, covering areas within the ‘lithium valley’ and Borborema region, where early exploration has identified promising pegmatite targets. These projects underpin the company’s growth strategy amid a global push for critical minerals.
Amara’s recent capital raising of $2.2 million at a 25% premium, backed by cornerstone investor Nova Minerals, is set to fund ongoing drilling and exploration efforts at these Victorian projects, signalling continued operational momentum despite the legal headwinds.
Bottom Line?
Amara’s cross-claim marks a bold legal manoeuvre that could reshape the GST indemnity dispute, but the path to resolution remains unclear as exploration activities press on.
Questions in the middle?
- How will the court assess the allegations of misleading conduct against Great Divide Mining?
- What financial exposure could Amara face if the indemnity claim is upheld without contribution from Challenger?
- Could the ongoing legal proceedings divert focus or resources from Amara’s exploration ambitions?