Broken Hill Prospecting Limited (ASX: BPL) explores for metals. The Company explores for cobalt in the Himalaya North, Pyramid Hill, Pyrite Hill South, and Big Hill North areas near Broken Hill, Australia.
The company has released the details regarding the progress in the joint venture dispute. To give a brief background about the same, Cobalt Blue Holdings Limited (ASX: COB) and the company are in a JV to develop the Thackaringa Cobalt Project.
BPL had earlier filed 4 Dispute Notices with regards to the Joint Venture Agreement. However, COB has now elected to forward to an Independent Expert determination after exhausting intercompany negotiations.
Cobalt blue has a belief that its legal position is intact & thus considers that an Independent Expert determination is the most apt and quick mean for all the parties going forward.
COB believes that by the involving the Resolution Institute (RI) determination process, most of the legal submissions can be ultimately given final shape by April 2019. From this stage, an Independent Expert can form a binding decision upon both parties. Moreover, cobalt blue has issued a Dispute Notice to the company regarding its failure to register the COB’s legal ownership rights over the Thackaringa Project sites with the DoP&E (i.e. Department of planning and environment). Cobalt Blue has all the rights be registered as a Joint holder of those sites in partnership with the BPL. This will enable the regulatory approvals to be obtained by Cobalt blue so that the Thackaringa Cobalt Project can proceed in a quick way going forward.
The COB management has said that the Determination process will provide certainty for their shareholders and bring more clarity concerning the workings of the Joint Venture Agreement. While a final and binding Expert Determination is pending, COB will continue to manage the Thackaringa Joint Venture.
It is to be noted here that, BPL has lodged four Joint Venture Dispute Notices to date; namely:
- Dispute Notice (1): Thackaringa Drilling Campaign – received 13 November 2018
- Dispute Notice (2): Dilution Clause – received 3 December 2018
- Dispute Notice (3): Stage 2 Compliance – received 7 December 2018
- Dispute Notice (4): JV Manager – received 17 December 2018
It is also noteworthy here that the Net Smelter Royalty Dispute Notice that was lodged on the 3rd of December 2018 is not a Joint Venture Agreement dispute. Cobalt Blue is still awaiting a piece of further information from the company on this dispute.
Now, let us have a glance at the Broken Hill Prospecting Limited’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $0.024 and had a market capitalisation of ~$3.55 Million. The stock has provided a YTD return of -22.58% & also posted returns of -66.67%, -38.46% & -20% over the past six months, three months, and one-month period respectively. It had a 52-week high price of $0.21 with an average volume of 114,704 approximately.
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