mexican stand off

Just thinking aloud here - in WA, the government has a 'use it or lose it' policy on gas field leases. One of its intentions is to prevent foreign companies from taking a lucrative lease and not developing it, in favour of say developing a cheaper overseas asset and hence preventing a competitor from developing the local asset, keeps a lid on supply. In Four Mile's case, it not being developed for other reasons

In the case of Four Mile, with the SA government knowing what's going on behind the scenes, could the SA govn legally remove the lease from the JV (or AGS) on the basis of prolonged delays, Quasar not forthcoming with promised information etc, and then hand it back to AGS in good faith. AGS would then have a 100% owned 28,000T JORC resource at 0.35% grade, ready to be developed by AGS or on sold to say Areva or Cameco in its entirety. Ok, I know it sounds a little far fetched, there may be other ways, but you would have to think IG & Co would be looking at their legal options to ditch these cowboys off AGS's lease, and that the JV agreement as to not meeting the required mining start date/contract commitments has been broken/breach of contract etc etc goodbye Heathgate. And, AGS are cashed up to do it....

Don't discount our management and what they can do under Australian law