West Perth-based Polaris Metals Ltd has resolved the rights of Perth's Portman Ltd to explore for iron ore on the Bungalbin tenements have ceased, a decision the company says Portman does not agree with.
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West Perth-based Polaris Metals Ltd has resolved the rights of Perth's Portman Ltd to explore for iron ore on the Bungalbin tenements have ceased, a decision the company says Portman does not agree with.
West Perth-based Polaris Metals Ltd has resolved the rights of Perth's Portman Ltd to explore for iron ore on the Bungalbin tenements have ceased, a decision the company says Portman does not agree with.
The full text of a Polaris announcement is pasted below
The Directors of Polaris Metals NL (ASX: POL, "Polaris") advise that, based on detailed legal opinion from its lawyers Hunt & Humphry of Perth, they have resolved that the rights of Portman Limited ("Portman") to explore for and mine iron ore on Polaris' mining tenements at Bungalbin (north of Koolyanobbing, WA) under a document titled "Heads of Agreement Bungalbin Iron Ore Project" originally made between Portman and Heron Resources Limited in 1999 and assigned to Polaris ("Agreement") on 29 September 2006 have ceased.
The reason is that Portman failed to meet the Agreement's requirement to commence mining operations. Portman was allowed five years from 4 July 2000 to do so, a period which was extended for an additional two years to 3 July 2007.
Under the Agreement, Polaris and Portman could agree to extend that period for another two years.
Through its lawyers, by a letter delivered to Portman on 4 July 2007, Polaris has advised Portman that it does not agree to any such further extension.
Although the mining tenements remain in Polaris' name, pursuant to the Agreement Portman holds registrable transfers of two granted mining leases. Polaris' lawyers have demanded Portman not to lodge those transfers for registration and instead to immediately return them to Polaris. In the alternative, if those transfers have already been lodged for registration, Polaris' lawyers have demanded that Portman immediately withdraw them before registration. The other tenements the subject of the Agreement will remain in Polaris' name.
Polaris' lawyers have formally requested Portman's undertaking not to lodge those transfers or to withdraw them from lodgement (as the case requires). If Portman does not give that undertaking, it is Polaris' intention to commence legal proceedings immediately.
Portman's Chief Executive Officer has advised Polaris that Portman does not agree that its rights have ceased or that Polaris is entitled to ownership of those two granted mining leases. He has told Polaris that Portman is in the process of taking detailed advice in respect of the matters raised by Polaris' lawyers.