Look on the bright side you may get a heap more cheap over the next 6 months... Pete. Heres a song....lol http://www.youtube.com/watch?v=jHPOzQzk9Qo
19 February 2009 The Manager Company Announcements Office Australian Securities Exchange Limited Level 4, Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sir NAMIBIAN PROJECT – UPDATE Metals Australia Ltd provides this update on the status of its Mile 72 and Engo Valley uranium projects in Namibia. As previously announced, most recently in our Quarterly Activity Report dated 30 January 2009, we are still awaiting the renewal of our Namibian Licences EPL 3306 and 3308 at Engo Valley and Mile 72. Metals Australia has held these licences since March 2006 and they fell due for renewal in May and June 2008. Metals Australia lodged its applications to renew the licences in February and May 2008. The two original licences were in the name of Malakia Joses Amakutuwa but were transferred to New Mining Company (Pty) Ltd, whose name was changed to Metals Namibia (Pty) Ltd, a wholly owned subsidiary of Metals Australia. The Ministry of Mines and Energy endorsed the transfer of the licences on 14 March 2006. Following our exploration successes at Mile 72, the Company became aware that Mr Amakutuwa may take steps to seek to resile from the original agreement and attempt to renegotiate his position. In this regard, the Company retained Namibian lawyers, Lorentz Angula Inc, and Senior Counsel in Namibia, to protect the Company’s rights. Lorentz Angula have in fact now received a court application brought by Mr Amakutuwa against the Company, the Minister of Mines and Energy, and a former Australian partner of Mr Amakutuwa who facilitated the acquisition in 2005. A copy of the court documents was received by the Company on 17 February 2009. Mr Amakutuwa seeks an order from the High Court of Namibia to declare Metals Australia’s original purchase agreement dated 7 November 2005 and a subsequent Deed of Amendment and Release dated 2 February 2007 to be null and void. The application also seeks an order directing the Minister of Mines and Energy to transfer EPLs 3306 and 3308 back into Mr Amakutuwa’s name. Lorentz Angula have advised Metals Australia that it has considered the Applicant’s claim and obtained advice from Senior Counsel in Namibia that confirms their view that the Applicant’s claim has no justification, either in fact or in law, to support a realistic prospect of success. The lawyers have also advised that, based on the information received from us, a strong defence can be made out against Mr Amakutuwa’s claim. A copy of Lorentz Angula’s letter of 17 February 2009 is attached to this announcement. Lorentz Angula have now been instructed to vigorously oppose the action taken against Metals Australia and to additionally seek an urgent injunction to ensure the licences remain in the name of the Company’s Namibian subsidiary pending the outcome of the application and, if appropriate, to seek damages for any delay. The Board of Metals Australia is determined to have this matter resolved as quickly as possible to allow exploration work to continue on these two projects, in particular, the highly prospective Mile 72 project. The Board believes the most appropriate way to achieve this is through the formality of the Namibian legal system and a hearing in that country’s High Court at the earliest possible time. We will keep the market informed of further developments. Yours faithfully, HS Majteles Chairman Metals Australia Ltd
MLS Price at posting:
1.0¢ Sentiment: None Disclosure: Not Held
