Uranium exploration company Groote Resources Ltd (ASX:GOT) is experiencing a sink in its shares after federal Indigenous Health Minister Warren Snowdon told the company to shelve plans for mining near Groote Eylandt.
Groote's shares fell 18 per cent following Mr Snowdown's unprecedented calls.
The company has fought back saying there is another firm that holds subsea rights in the region, speculated to be BHP Billiton (ASX:BHP).
BHP operates a manganese joint venture with Anglo American on Groote Eylandt.
Groote Resources is holding an annual general meeting at the end of the month, where a delegation of traditional owners from the Northern Territory region will express their concerns.
For the year ended 30 June 2010, Groote Resources posted a net loss of around $1.7 million.
GOT Price at posting:
36.0¢ Sentiment: None Disclosure: Held
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