PERTH (miningweekly.com) – ASX-listed Broken Hill prospecting has issued a notice of dispute to fellow listed Cobalt Blue over the start of drilling activities at the Thackaringa cobalt project, in South Australia.
The dispute related to the drilling activities that have started outside the requisite approval process set out in a joint venture agreement, Broken Hill said on Tuesday.
The JV parties have been stuck on a suitable timeframe for bankable feasibility study (BFS) work at Thackaringa, with Cobalt Blue taking the decision to elect out of the earning period process of a previous farm-in agreement, which would have required a BFS by mid-2019.
The issue led Cobalt Blue to opt out of the farm-in agreement, and to retain a 70% interest in the JV, rather than working towards full project ownership.