I notice the article in the SA Advertiser did not go into the actual facts of the dispute but just urged AGS to get on with it and proclaimed that Quasar had 'good faith'. None of the posturings of AGS or Quasar will matter once the court becomes involved. AGS has a bit of law on its side that deals with the protection of junior partners in business equally it will just depend upon the clauses of the jv contract. Heathgate would obviously like AGS to sign everything put before it, not ask questions nor enforce its rights as a JV partner.
AGS has a number of things going in its favour. Quasar/Heathgate have a number of other tennaments for which it will seek approval and at least one other JV on similar terms to AGS. The SA govt is very keen for Beverly to proceed asap as well this federal govt has a 'use it or lose' it policy and would not be kindly disposed to approve mining where other areas owned have been not used as planned.
However against this you must weigh that the controlling mind of Quasar (Neal Blue) is very powerful, rich and has a past history of digging in in the most unethical way.
AGS Price at posting:
55.5¢ Sentiment: None Disclosure: Held
