Sefton Resources updates on litigation with former chairman

Investors in Sefton Resources on Thursday welcomed the news that it has removed the recent legal action brought by its former chairman to Federal Court in Colorado, meaning the State Court no longer has jurisdiction to preside over the case.

Jim Ellerton has made claims against the company, two of its directors and a former director which outline unspecified damages related to his resignation from the company in 2013, the termination of the consulting contract with his former consultancy company C&J Resources.

The company said on Wednesday that it has retained legal counsel in Colorado and will "vigorously defend against Mr. Ellerton's claims and those of his former consultancy company, C&J, and related pension plan".

It continued: "The company contends that the claims are without merit, and the company is considering all possible counterclaims against Mr. Ellerton and C&J based on their own misconduct."

The group first announced at the end of May that it had learned the complaint had been lodged.

Shares in Sefton had risen 8.58% to 0.168p by 11:42.