Image source: PGM ASX update, dated 16 February 2021
- The WA Supreme Court has accepted Platina Resources’ application for declaratory relief concerning the Munni Munni project.
- The Company is set to receive proceeding costs from the concerned parties.
- Platina Resources considers the judgment as an opportunity to evaluate the optimal strategy to move the project forward.
Australia-based company Platina Resources Limited (ASX: PGM) has released a significant market update concerning the Munni Munni Project (30% interest) in the Pilbara region of Western Australia.
The Company has welcomed the court judgment in relation to the proceedings against Artemis Resources Limited and its subsidiaries Munni Munni Pty Ltd (MMPL) and Karratha Metals Pty Ltd.
Why Platina Resources Opted for Court Case?
Platina Resources began the Supreme Court proceedings in Western Australia over breach of the Heads of Agreement concerning the project.
The Company entered the agreement with Artemis and Karratha in 2015. In April 2020, Artemis unveiled its plan to divest a part of its project interest (51% of the total 70%) to Empire Metals PLC and Almeera Ventures. However, Artemis and MMPL were unable to proceed with the contractual arrangements as the latter was not a part of the agreement.
As per Platina Resources, Artemis, Karratha, and MMPL breached the agreement, owing to the proposed transaction.
Platina Resources Welcomes the Supreme Court Findings
Though the Supreme Court did not term the case a breach of the agreement, it has accepted the Company’s application for declaratory relief. The WA Supreme Court directed that MMPL was not a part of the agreement, inked between Platina Resources and Artemis. The parties under the JV remain Platina Resources and Karratha.
Moreover, the Supreme Court ordered Artemis, MMPL, and Karratha to pay 70% of Platina Resources’ proceeding costs from 26 October 2020 onwards.
Platina Resources Managing Director Corey Nolan emphasised that the orders allow the parties to look for the best strategy to advance the project.
Source: PGM ASX Update, dated 26 Feb 2021
Located 100km from Karratha, the project sits nearby the Radio Hill processing plant. The project covers a historical resource for palladium, platinum, gold, and rhodium. It has open cut and underground mining potential.
PGM traded at AUD 0.047 on 26 February 2021 (AEDT: 02:29 PM).