* Polaris and Portman have reached an agreement and legal document drafting is approaching completion.
From 4 July 2000 until 3 July 2007 Portman Limited (Portman) had rights to explore for and mine iron ore on the tenement containing the Bungalbin East Deposit and other tenements in the general vicinity (collectively BIOP Tenements under an agreement titled “Heads of Agreement Bungalbin Iron Ore Project” (HOA) originally made between Portman and Heron in 1999 and assigned to Polaris on 29 September 2006. Under the HOA, if Portman had delineated iron ore deposits and commenced mining on BIOP Tenements, it would have been required to pay a royalty to Polaris at the rate of 2% of the FOB value it received for all iron ore transported from the tenements and sold. Portman failed to meet the requirement of the HOA to commence mining operations, having been allowed five years from 4 July 2000, and subsequently an extension for an additional two years to 3 July 2007 to do so. As announced by Polaris in 2007, Polaris Directors resolved that based on detailed legal opinions the rights of Portman to explore for and mine iron ore on BIOP mining tenements ceased on 3 July 2007. Portman subsequently announced that it did not agree. A period of commercial discussions followed leading to a mutually beneficial settlement.
POL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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