does anyone have reliable information of this apparently...

does anyone have reliable information of this apparently unresolved problem regarding the Kingsgate project, which was listed under the risks-section in the IPO prospectus? could it cause AZX legal problems e.g. delays concerning the development of the Kingsgate mine?

from IPO prospectus:

2.1.10 Prior Titles and Applications

Exploration Licence No 6333 excludes an area of 120.73 hectares which is subject to Private Mining
Agreement No 180 (Inverell) 1973 (“PMA 180”) (see Section

2.1.11 below for further details).

Exploration Licence Application No 2537 has been lodged over the three graticular units which surround
and include the PMA 180 area. Except in the PMA 180 area, these graticular units are already subject to
part of Exploration Licence No 6333. It is anticipated that Exploration Licence Application No 2537 will
only be granted over the PMA 180 area.

2.1.11 Private Mining Agreement No 180

A Private Mining Agreement is an administrative tool used by the DPI-MR for the purposes of regulating the
New South Wales titles system, but there is in fact no reference to such an entity in the Mining Act 1992.
Mining of privately owned minerals by the owner of those minerals, or another party with the consent of that
owner, is permitted under Section 8 of the Mining Act 1992 and a Private Mining Agreement is the method
by which the DPI-MR records those private mining operations. The existence of private mining operations
precludes the grant of any mining or exploration titles over the relevant land except with the consent of the
owner of the minerals (Sections 20 and 60 Mining Act 1992).
PMA 180 is registered in the name of Noel Wilson. The underlying land (‘the PMA 180 Land”) is registered
in the names of Noel Wilson, Wayne Collison and John Owen. There are a number of ambiguities related
to PMA 180, including the following:
• The DPI-MR is unable to locate the PMA 180 file;
• No actual mining operations appear to have been carried out since PMA 180 was first recorded;
• PMA 180 only envisages the mining of copper, bismuth and molybdenite;
• The available information indicates that, notwithstanding the fact that title to the PMA 180 Land is
registered in the names of Collison, Wilson and Owen jointly, a 100 per cent equitable interest in the
PMA 180 Land, the privately owned minerals in that land and the right to mine those minerals is held by
Collison; and
• It is understood that Wilson is deceased and his legal interest will be subject to the law of succession,
although thus far it has not been possible to prove this.
For the purposes of putting these matters in order, the Company and Collison have entered into a Letter
Agreement dated 20 May 2005, which stipulates the following:
• The Company will provide reasonable financial assistance to Collison to have all of the legal interest
in the PMA 180 Land, the privately owned minerals in that land and the right to mine those minerals
transferred to him;
• The Company is authorised to explore for or develop privately owned minerals within the PMA 180
area. Gold, silver and other publicly owned minerals are not affected by this;
• Collison, as the mineral owner, will provide written consent to the grant to the Company of an
Exploration Licence pursuant to Exploration Licence Application No 2537 over the PMA 180 area. This
Exploration Licence will apply to all Group 1 minerals (publicly and privately owned); and
• In the event that the Company develops a mine within the PMA 180 area, Collison will have a 25 per
cent net profit interest in that mine.
• If the Company does not develop a mine it will facilitate the registration of the right of Collison to mine
privately owned minerals in the PMA 180 Land.