Alliance launches action

Exploration & Development

Publishing Date: 18 Nov 2009 1:49pm GMT
Author: Mining Journal

Alliance Resources Ltd, which holds a 25% interest in the Four Mile uranium project in South Australia, has launched an action in the Supreme Court of South Australia against two companies.

Alliance alleges that its partner, Quasar Resources Pty Ltd, and Quasar's affiliate Heathgate Resources Pty Ltd, submitted a native title mining agreement (NTMA) for the Four Mile project and nearby operating Beverley mine, in breach of their contractual obligations.

Alliance said the inclusion of Heathgate’s Beverley mine in the NTMA gives rise to potential liabilities to Alliance for matters pertaining to Beverley, as well as giving Heathgate the right to make mining decision relating to the Four Mine project.
Alliance further says it was not invited to participate in negotiations with native title holders for the NTMA.

The company said it is seeking a mandatory injunction requiring Quasar to commence negotiating a new native title agreement relating only to the Four Mile project, as well as seeking damages and costs.