Aquila Resources is considering legal action after talks broke down with a South African government-backed company over alleged overlapping mining rights to a manganese deposit in South Africa.
The Perth-based company announced today it was considering its options to protect its right to explore and mine the Gravenhage manganese deposit, which it has been exploring since 2006.
Aquila said it had recently received correspondence from lawyers representing Pan African Mineral Development Company, claiming an overlapping prospecting right on the Gravenhage deposit.
Pan African is jointly owned by the governments of South Africa, Zambia and Zimbabwe.
The alleged overlapping rights, according to the documents, were granted in Nobember 2011, five years after a prospecting right over the same areas was given to Aquila.
South Africa’s Department of Mineral Resources also accepted a mining right application from Aquila in December 2010.
Aquila said today that the matter was unlikely to be resolved through further negotiation.
“It is regrettable that Aquila now needs to consider legal action to protect the security of its tenure on the Gravenhage manganese deposit, having advanced the project since 2006 in accordance with all relevant laws and DMR,” chairman Tony Poli said in a statement.
At 1:30PM, WST, Aquila stocks were down 1.8 per cent, at $2.16.