Shares in Flinders Mines have been placed in a trading halt pending the outcome of court action aimed at preventing the iron ore explorer’s $554 million takeover by a Russian steel maker.

Flinders shares eased 2.22 per cent to 22 cents in early trade on Thursday before being placed in the trading halt, which will continue until Monday or until an announcement is made.

Flinders’ suitor, Magnitogorsk Iron and Steel Works (MMK), has lodged a motion in the Arbitration Court of Chelyabinsk Region of Russia seeking a discharge of an injunction secured by one of MMK’s minority shareholders.

The shareholder, Elena Egorova, had argued that the planned takeover presented operational and financial risks to MMK and therefore would adversely affect her investment.

Flinders on Wednesday said the motion would likely be heard no later than April 13.