PERTH (miningweekly.com) – Diversified junior Aquila Resources is considering legal action to ensure its rights over a portion of the Gravenhage manganese deposit, which forms part of the Avontuur project in South Africa.
Aquila has been in contact with lawyers from Pan African Mineral Development Company (PAMDC), which is owned by the governments of South Africa, Zambia and Zimbabwe, alleging that PAMDC was the holder of an overlapping prospecting right.
The ASX-listed company pointed out on Friday that the alleged overlapping prospecting right was granted in November 2011, which was over five years after a prospecting rights over parts of the same area was granted to Aquila. The alleged grant was also almost one year after the Gravenhage mining right application was accepted by the South African government.
Aquila said that following discussions with its lawyers and its black economic-empowerment partner, the company believed that it was unlikely that the matter would be resolved by further discussions.
As a result, Aquila has now written to Mineral Resources Minister Susan Shabangu requesting a formal decision on the Gravenhage mining right application.
Failing a positive decision, Aquila could lodge an internal appeal of the Minister’s decision, as well as an injunction and judicial review proceedings.
“It is regrettable that Aquila now needs to consider legal action to protect the security of its tenure on the Gravenhage manganese deposit, having advanced the project since 2006 in accordance with all relevant laws and requirements,” said Aquila executive chairperson Tony Poli.
The Avontuur project has a resource of 147.8-million tonnes at an average grade of 38.2% manganese. A definitive feasibility study into the Gravenhage deposit identified a reserve of 20.2-million tonnes, at an average grade of 40.1% manganese.