Australian junior considering legal action over Niger permits
Australian junior Middle Island is considering its legal options, including international arbitration, over the Niger government’s refusal to grant extension applications for its Deba and Tialkam permits, comprising part of the Sirba gold project.
ASX-listed Middle Island said on Thursday it was convinced that the applications complied with the governing legislation and, accordingly, should not have been refused.
Middle Island’s intention was to complete feasibility programmes and studies on the Sefa Nangue and Tialkam South deposits with a view to processing the ore at the proximal Samira Hill gold operation, which is 100% owned by SOPAMIN, the Niger State-owned mining agency.
“It is widely understood that the longer term future of the Samira Hill project will likely, and its present value as a sale proposition singularly, depend on access to additional gold resources within Middle Island’s surrounding permits.
“Significantly, the rejection advice has been received two days after Middle Island was informally advised that the sale of a majority interest in the Samira Hill gold operation is imminent. Given the near 12-month delay in processing the extension applications, the simultaneous rejection of Middle Island’s applications and the reactivated sale of a majority interest in the Samira Hill Project appear to be more than mere coincidence,” the company stated.
Middle Island said it was confident that the Minister’s decision was incorrect and not sustainable under the rule of law.
The company has instructed its Paris-based legal team to advise on its appeal options.
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