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PERTH (miningweekly.com) – Western Australian Mines and Petroleum Minister Bill Marmion has thrown his backing behind ASX-listed Cauldron Energy’s exploration of uranium tenements in the Pilbara.
In February last year, the Mining Warden recommended that Marmion refuse Cauldron Energy’s applications for three new uranium exploration licences on and adjacent to the Minderoo pastoral station.
The Warden had interpreted the Mining Act in a way that he had to be satisfied that Cauldron could fund the exploration activities on the tenements at the time of the hearing date, which had been December 2013, which resulted in alarm for junior explorers.
Cauldron said on Wednesday that Marmion had decided not to accept the Mining Warden’s recommendation, with executive chairperson Tony Sage saying this decision indicated support for greenfield exploration in Western Australia.
“This decision is not only great news for Cauldron’s investors, but also for those junior explorers who are struggling in the current environment. It is a win for our industry since the implications of the Warden’s decision, had it been upheld, would have thrown junior explorers in Western Australia into disarray.”
Sage pointed out that Cauldron was in a strong financial position to undertake exploration on the licences, with a bank balance of about A$3-million and a further A$7.47-million in funding from various investors.
“This has been a long-running and costly legal dispute which cost the company much-needed finance on litigation, rather than putting valuable shareholder funds into the ground through exploration,” Sage said.
He noted that the company had always remained confident that it would have the necessary funding in place to undertake future exploration in the licence areas.
“The company now looks forward to moving the application forward and, in time, start exploration on these tenements.”