PERTH (miningweekly.com) – A A$40-million asset sales agreement between ASX-listed Focus Minerals and fellow listed Intermin Resources could be under threat.
Focus, which is in the midst of a five-month exclusivity agreement with Intermin over the purchase of the Coolgardie gold project, on Monday alerted shareholders that it had applied for exemption from its minimum expenditure obligations over 66 tenements at the Coolgardie project and the Laverton project.
The application to the Western Australian Department of Mines, Industry Regulation and Safety comes as the company is facing a number of forfeiture applications lodged by three applicants over the tenement areas, claiming that Focus has failed to comply with its minimum expenditure obligations under the Mining Act.
The Mining Act allows for persons to plaint a tenement if they could prove that the owners of the tenement did not meet their minimum expenditure obligations, which could result in the Warden’s Court ordering the plainted tenements to be transferred to the plainter.
Focus on Monday denied that it had missed its minimum expenditure obligations, saying it had actively explored its projects, and had reported its significant expenditure during the relevant periods.
The company will present its detailed evidence of drilling and related expenditure in support of the exemption applications, it added.
Furthermore, Focus told shareholders that Interim had been aware of the forfeiture applications as part of its ongoing due diligence review of the mothballed 2.1-million-ounce Coolgardie gold project, which includes the 1.2-million-tonne-a-year Three Mile Hill processing plant.
Focus said that the forfeiture applications were ‘opportunistic’ and arose at a time of the sales process.
Meanwhile, the company has reiterated that no binding sales agreement over the Coolgardie project has been signed with Interim, with both companies reportedly working to advance a potential transaction.