I'll repeat a particularly relevant point that has been raised...

I'll repeat a particularly relevant point that has been raised in a few posts these past weeks, so that CTP shareholders can make an informed decision:


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Across the Nullarbor meanwhile, Palmer's wholly owned Mineralogy has been accused of dirty tricks by a small mining company, Rey Resources.

According to a 2010 judgment from WA's Warden's Court, which deals with disputes over mining tenements, the Rey Resources subsidiary Blackfin alleges Mineralogy learned about the status of the licences after it had purchased shares in Rey Resources and was invited by its management to develop ''corporate transactions or asset deals'' that might benefit both companies.

Mineralogy has applied for Blackfin to forfeit two exploration licences in the coal-rich Canning Basin in Western Australia because it did not spend the required amount of expenditure on drilling and exploration to maintain the licences. While no one disputes that the small miner has failed to meet the expenditure threshold, it had received exemptions regarding its underspend in the past - a common occurrence.

It is, however, the manner in which Mineralogy obtained the information about the underspending that has raised the ire of Rey Resources.

According to court documents obtained by the Herald, Blackfin alleges Mineralogy learnt about the status of the licences after it had purchased shares in Rey Resources and was invited by its management to develop ''corporate transactions or asset deals'' that might benefit both companies.

At the time, Rey Resources was the subject of two hostile takeover offers and wanted to raise $15 million to fund a detailed feasibility study about developing its Canning Basin assets. Mineralogy was allegedly invited into Rey's ''database room'' and ''gained access to confidential information''.

Soon after, Rey alleges, Mineralogy began selling down its stake and, the day it sold its last shares, launched its bid for the licences to be suspended.

''The applicant suggests the information supplied to [Mineralogy] in confidence by Rey had been utilised by Mineralogy to, in effect, attack the licence,'' WA mining warden Paul Roth said in his judgment.

Mineralogy's then director of geology and exploration, Mark Strizek, submitted to the court that he came across Rey's problems with the exploration licences only through publicly available information, including announcements to the stock exchange.

Mineralogy was applying to the Warden's Court for an extension of time to challenge the licences. Strizek said he missed the 35-day deadline because he was ''extremely busy'' and unaware of the deadline.

Rey Resources, in contrast, contended that the need to sell its shares explained the delay.

Roth expressed sympathy for this contention: "In my view, this unexplained concurrence of events does cast a shadow over the veracity of the explanation given by [Mineralogy] for the delay.''



Read more: http://www.smh.com.au/business/tracing-palmers-wealth--a-titanic-undertaking-20120511-1yi2w.html#ixzz1vlUdUFiR"