Sydney-based Chameleon Mining NL (ASX: CHM) said on Friday that the state's Supreme Court would be lifting its receivership filed by its Singaporean litigation funder International Litigation Partners (ILP).

ILP made the move on Wednesday as it accused Chameleon of breach of terms when the latter sealed an agreement with Cape Lambert Resources Ltd.

ILKP said that Chameleon violated the explicit terms of the $20 million fixed and floating charge that the former had secured from the miner in 2009, effectively barring the company from awarding security of its assets to any third party entity.

On its part, Chameleon said that it sought collaboration with Cape Lambert for strategic purposes as it stressed that its tie up with the latter would result to credit facilities of up to $6.5 million for the company.

A Chameleon representative told AAP that the company obtained an injunction from the NSW Supreme Court that would prevent the receiver from furthering any actions, which was challenged by ILP but was thrown out by the judge.

The company spokesman informed AAP that "Justice Clifford Einstein ruled that these matters are urgent and must be dealt with on a final basis as soon as possible," as he added that court hearings would resume by Tuesday next week to determine on whether the receiver should be finally lifted.

Chameleon expressed confidence that the judge would be ruling on its favour as it stressed that Cape Lambert's decision to invest on the company is a statement of support on its earlier actions.

The company has an ongoing legal battle on the Federal Court of Australia with Murchison Metals Ltd as it questioned the iron ore miner's claim over the Jack Hills iron ore assets in Western Australia.