Hi everybody,
here is an article in today's West, about US and THEM.
Hope it helps the overall discussion.
Mining Dispute over lithium deposit rests on emails, calls
Nick Evans
THE WEST AUSTRALIAN Friday, January 20, 2017 7:45AM
Marindi Metals boss Joe Treacy. Picture: Neale Prior/The West Australian.
The fate of one of the biggest lithium deposits in WA is set to rest on whether the Supreme Court finds the content of an email exchange and telephone call constitutes a contract for the sale of lithium rights to Kidman Resources’ Earl Grey project.
Justice Kenneth Martin set the dispute between Kidman and Joe Treacy’s Marindi Metals for a five-day trial starting on May 29. He also ordered court-supervised mediation between the parties before the trial.
At stake is Kidman’s Early Grey project, which hosts a 128 million tonne resource grading 1.44 per cent lithium oxide, making it one of the biggest undeveloped lithium plays in the sector.
The Supreme Court was told yesterday Marindi’s claim for the lithium rights covering the project rests on whether emails and calls last April can be held to be a binding contract.
The Supreme Court was told yesterday that Marindi is seeking orders forcing Kidman to fulfil its alleged contractual arrangements.
Marindi has said those terms include the sale of lithium rights on Kidman’s tenements in exchange for $100,000 cash, $175,000 worth of Marindi shares and a 2 per cent net smelter royalty on product produced.
Details of the the exchanges are yet to be presented to court.
While accepting that discussions took place, lawyers for Kidman told the Court yesterday Marindi had not acted as if it had won a binding agreement until filing a lawsuit until it filed the lawsuit in November. Marindi made no disclosures of the discussions with Kidman, or of the supposed agreement, the court was told.
Kidman has said it believes Marindi’s claims are “opportunistic” and without merit.
The company picked up the rich lithium deposit when it bought the Mt Holland gold project from the ashes of Convergent Minerals early last year.
Kidman was initially only interested in the million ounce gold resource at the project, but said last April had had received a number of approaches seeking access to tenements for lithium exploration.
Kidman shares closed flat at 50¢. Marindi shares were down 0.1¢ to 2.8¢.
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