PERTH (miningweekly.com) – ASX-listed Alliance Resources has taken its grievance with project partner Quasar Resources to the Australian Supreme Court, in an effort to gain control of its share of production from the Four Mile uranium mine, in South Australia.
Earlier this week, Alliance announced that Quasar had passed the 2015 programme and budget, entailing the production of 2.64-million pounds of uranium concentrates and a cash expenditure of $107.75-million, of which Alliance was expected to contribute $26.93-million.
The Australian company expressed its concern over Quasar’s intent to stockpile the Four Mile uranium production from both the 2014 and 2015 work programmes, thereby generating no revenue during 2015.
In a statement to shareholders, Alliance said on Wednesday that it had now, through its wholly owned subsidiary Alliance Craton Explorer, terminated Quasar’s appointment as sales and marketing agent for the company’s share of the Four Mile product, and had instituted proceedings in the Supreme Court seeking a declaration that the termination was valid, and orders that Alliance’s share of the product be delivered to the company.
The company pointed out that about 510 000 lb of uranium ore concentrate had been shipped to a converter in Ontario, with the company estimating the value of its share of the concentrate to be more than A$6-million, at the current prices and exchange rates.
“Alliance directed Quasar to sell its share of product at the best price available. Quasar has refused to comply with that direction,” the company said.
Alliance said its action against Quasar was taken in the interest of protecting the company’s financial position, adding that the proceeds raised from the sale of the Four Mile product would be used to fund the future costs associated with the project.
The Four Mile project was officially opened in June, after commissioning started in March, and the project was forecast to have produced about 1.39-million pounds of uranium concentrate by the end of November.