05/08/2019 - 15:28

Gold juniors gearing up for legal stoush

05/08/2019 - 15:28

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Claremont-based Arrow Minerals and Subiaco-based Dreadnought Resources could soon be embroiled in a legal battle, after Arrow raised issues with Dreadnought’s acquisition of the Illaara gold project from Newmont Mining.

Arrow Minerals and Dreadnough Resources are both seeking to become gold producers.

Claremont-based Arrow Minerals and Subiaco-based Dreadnought Resources could soon be embroiled in a legal battle, after Arrow raised issues with Dreadnought’s acquisition of the Illaara gold project from Newmont Mining. 

In a statement to the ASX, Dreadnought, formerly Tychean Resources, said Arrow had claimed the misuse of confidential information by Dreadnought in relation to its purchase of the Illaara project, which it acquired in June.

The specific details in regards to Arrow’s claim of misuse of confidential information was not disclosed in the ASX announcement.

“Based on that claim, Arrow has sent correspondence to the company stating that Arrow believes they are entitled to claim the company’s interest in the Illaara project recently acquired by Dreadnought,” Dreadnought stated.

“Arrow has informed Dreadnought that they believe the Illaara project is now held on trust for Arrow.”

The company said no formal court proceedings have commenced, but Arrow had threatened to launch proceedings if the dispute was not resolved.

Dreadnought said it strongly refuted Arrow’s claim and would vigorously defend its claim should legal proceedings commence.

The company also said it expected to begin its target definition exploration project in late August, as was previously outlined in its June quarterly.

Minutes later, Arrow confirmed on the ASX that it had sent letters to Dreadnought to discuss the Illaara acquisition, but the latter had not responded to its request.

Arrow said it “reserves its rights”.

Illaara is located 160 kilometres north-west of Kalgoorlie, containing four tenements and five target areas.

The project acquisition comprised of $120,000 and a 2.5 per cent net smelter royalty.

Dreadnought has raised $1.1 million to fund the acquisition and commence exploration.

Arrow Minerals has a focus on the Strickland gold project, which is located 100km west of Menzies. 

Shares in Dreadnought were flat at 0.4 cents each at 2.20pm AEST.

Shares in Arrow were flat at 1 cent each at the 10.30am AEST.

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