PERTH-BASED mineral explorers Thundelarra Exploration Ltd and Sally Malay Mining Ltd have signed a formal deed settling their dispute in relation to the Copernicus nickel project in the East Kimberley. Under the deed, Thundelarra has confirmed that Sally Malay Exploration Pty Ltd, being a wholly owned subsidiary of Sally Malay Mining, has earned a 60 per cent interest in the Copernicus Project, while Sally Malay Exploration will contribute the first $3.5 million to expenditure on the Copernicus Project over the next four years. In April last year, the joint venture agreement between Sally Malay and Thundelarra to develop the Copernicus open-pit mining resource was cancelled because of a dispute between the partners surrounding Sally Malay’s 60 per cent stake. As part of the agreement signed in 2003 between the two local companies, Sally Malay was required to produce a feasibility study aimed at determining the viability of mining the resource, which is located 30 kilometres south of Sally Malay’s processing plant. That study was to determine the viability of trucking the ore to the nearby processing plant. Sally Malay submitted the study to Thundelarra in January last year. However, the board of Thundelarra, at the time, submitted a statement to the Australian Stock Exchange in which it terminated the agreement and outlined the explorer’s view that: “Sally Malay has not delivered a feasibility study for the purposes of the Heads of Agreement”. In a reply to the Thundelarra statement, Sally Malay managing director Peter Harold made clear his belief that his company had fulfilled its end of the agreement and that it “will act immediately to protect its rights and seek confirmation that it has earned its 60 per cent interest”. He also said the matter was with the company’s lawyers and he was unable to comment further. In March this year, Thundelarra advised it was in advanced negotiations with Sally Malay with a view to settling the legal dispute concerning the Copernicus project.
