It is reported that Junior explorer Cazaly Resources is considering whether to take its battle to dislodge Rio Tinto from the Rhodes Ridge iron ore project in Western Australia to the Supreme Court.
Cazaly said in a statement "At this stage, Cazaly is still considering whether to apply to the Supreme Court for review of the decision. It said the warden conclusion that the rights of occupancy are valid and subsisting appears to have been based upon a broad interpretation of the minister power in the state agreement to extend time which allowed the power to be exercised so as to achieve a retrospective renewal of the rights of occupancy.”
Cazaly said "While disappointed with this outcome, the company does not feel it will have a material affect on its finances and operations.''
According to the report, if Cazaly gains access to the land and undertakes successful exploration it plans to transfer the tenements to Fortescue Metals Group which will fund, develop and operate mining operations, paying capped royalties to Cazaly under an agreement reached in June last year.
Cazaly bid to gain access to the land for exploration suffered a setback recently when Western Australia Mining Warden Mr Graeme Calder advised he believed Rio Tinto and project partners Hancock Prospecting, Hamersley Resources and Wright Prospecting were validly occupying the project in the state Pilbara region.
Cazaly had applied for exploration licenses at the project after accusing the joint venture partners of warehousing it for 35 years and not validly renewing the rights of occupancy. The warden will soon make a recommendation to WA Mines Minister Norman Moore as to whether Cazaly exploration licence applications should be granted or refused.
(Sourced from www.theaustralian.news.com.au)
