Aguia Resources (ASX:AGR) welcomes first ruling in TEPP case

Be the First to Comment Read
Sponsored

Aguia Resources (ASX:AGR) welcomes first ruling in TEPP case

AGR shares rise on legal update
Image source: AGR website

 Highlights

  • Aguia Resources has welcomed the latest legal development concerning its Brazilian fertiliser project.
  • The Federal Trial Court judge has sent the case to the State Court of Lavras do Sul, recognising the lack of jurisdiction of the Federal Courts to hear it.
  • The Federal Public Prosecutor’s Office, which filed the PCA, has a 30-business day term to appeal.

Multi-commodity company Aguia Resources Limited (ASX:AGR) has been turning the corner in a challenging time regarding the ongoing legal proceedings related to its Três Estradas Phosphate Project (TEPP).

In a recent development, the Company received a favourable first instance decision in legal proceedings concerning the TEPP.

ALSO READ: Aguia Resources’ (ASX:AGR) March quarter high on action at copper and phosphate projects

Favourable first instance decision

In 2021, a public civil action (PCA) was filed against Aguia and the State Environmental Protection Agency (FEPAM) by the Federal Public Prosecutor’s Office (FPP) in relation to the Environmental Impact Assessment for the TEPP.

In the latest development, the Federal Trial Court judge has acknowledged the lack of jurisdiction of the Federal Courts to hear the case and has sent it to the State Court of Lavras do Sul. This is in favour of AGR’s initial argument regarding the FPP’s lack of standing to sue.

 RELATED READ: Why are Aguia Resources’ (ASX:AGR) copper and phosphate projects set for an exciting year ahead?

The latest decision by the Federal Trial Court was based on the following grounds:

  • The fact that the TEPP project is of local impact
  • There is no legal interest of the Federal Government
  • There is no traditional community affected by the project

The decision stands very solid on the third point as it refers to the documentary evidence attached by AGR to the case records. These records show that the ranchers have not self-declared as traditional communities, and a majority of them do not even live in the rural area.

Source: AGR Announcement 11/05/22

ALSO READ: Aguia Resources’ (ASX:AGR) Pampafos® beats chemical fertilisers; What’s Ahead?

Favourable development for AGR

AGR believes that the latest decision is a favourable development for the Company; however, the case is remains on-going. Moreover, if upheld in the wake of an appeal by the FPP, it would prevent the FPP from continuing to act as a plaintiff in the case.

Source: AGR website

 ALSO READ: Aguia Resources (ASX:AGR) makes headway with DANF phosphate products

Under such a situation, the case would be sent to the State Court of Lavras do Sul, and the State Public Prosecutor’s Office would be notified to comment on its interest in moving ahead with the case and taking over the plaintiff role.

The FPP has a 30-business day term to appeal, which is supposed to end on 4 July 2022. AGR’s legal team in Brazil will continue to closely monitor the case.

RELATED READ: Aguia Resources (ASX:AGR) develops innovative solutions for TEPP ore drying  

AGR shares traded at AU$0.061 on 16 May 2022.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK