Prairie Mining Limited (ASX: PDZ) is into coal exploration. The company is focused on the exploration, evaluation, appraisal and development of the Jan Karski (formerly Lublin Coal Project).
The company today, on 9th April 2019, has updated that it has been awarded the Priority Right to apply for a mining concession at Jan Karski in 2015, following its full compliance with Poland’s Geological and Mining Law (2011). This development is in consonance with the earlier filed civil law claim against the Polish Ministry of Environment for its failure to grant Prairie a mining usufruct agreement over the concessions, which form the Jan Karski Mine (Jan Karski) and to protect the company’s security of tenure over the project.
Subsequent to Prairie’s filing of the civil law claim discussed above, the Polish Civil Court granted Prairie a stay preventing the MoE from allotting the prospecting, exploration or mining concessions and concluding usufruct pacts with any other party until full court proceedings were completed.
In its ruling, the Court stated that, based on the evidence one might at this point, the plaintiff [Prairie] enjoys the right to request conclusion of the requested mining usufruct agreement for the Jan Karski, resulting from Article 15 of the Geological and Mining Law .
An Appeal Court in Warsaw has now overturned the Civil Court’s decision and lifted the injunction. Prairie believes that the Appeal Court’s decision is fundamentally faulty as it has the effect of retrospectively applying the August 2018 amended version of the Geological and Mining Law and (incorrectly) concludes that Prairie did not have a Priority Right over the entire Jan Karski deposit.
Prairie’s civil law claim against the MoE for failure to grant the company with a mining usufruct agreement at Jan Karski remains ongoing and is not impacted by the Appeal Court’s decision to lift the injunction. The Appeal Court’s decision is a further mark of the unfair and inequitable treatment faced by Prairie as a foreign investor in Poland, and the company will, therefore, consider all other actions necessary to ensure its rights are preserved.
Moreover, discussions between Prairie and Jastrz?bska Spó?ka W?glowa SA (JSW) have been continuing with JSW reporting that it would like to conclude the basic terms of a potential transaction with Prairie for the Debiensko and Jan Karski projects by the end of April 2019.
The lastest Interim financial report of PDZ could be read here.
In February 2019, Prairie and JSW signed an extension to an NDA, in order to discuss a deal structure and commercial terms for any co-operation or transaction and for the adaption of mine plans for both Debiensko and Jan Karski to align with JSW’s development concepts and to maximise potential synergies at Debiensko. However, at this point of time, there can be no certainty as to whether any transaction(s) or co-operation will be agreed or on the potential form of such transaction(s) or co-operation.
On the stock-performance front, the stock has posted the YTD return of -6.10%. The company also has posted a return of -18.95% over the past six months. While writing, i.e. on the 9th April 2019 AEST 1:45 PM, the stock of the company is trading at a price of A $0.40, up 3.896% during the day’s trade with a market capitalisation of ~A$81.73 million. The stock opened the trading day at A$0.400, which was also its intraday high with an average daily volume of ~5,000. It had a 52-week high price of A$0.650 and a 52-week low price of A$0.270, with an average volume of 167,274 approximately.
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