28/05/2009 - 15:31

Reward slumps on native title ruling

28/05/2009 - 15:31

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Shares in Nedlands-based explorer Reward Minerals have slumped after the National Native Title Tribunal ruled the company cannot access its Lake Disappointment potash project.

Reward slumps on native title ruling

Shares in Nedlands-based explorer Reward Minerals have slumped after the National Native Title Tribunal ruled the company cannot access its Lake Disappointment potash project.

The tribunal ruled that Reward should not be granted a mining lease without the consent of the Martu Native Title Party, which is looking to lock in favourable commercial terms as part of the mining agreement.

The tribunal added that it was not its place to set out the commercial terms.

Reward said it is currently reviewing the 81-page ruling and assessing its options.

Shares in the explorer closed down 25 cents to 45 cents today.

In August last year, Reward called off the deal with the Martu people after both parties were not able to settle terms of a formal agreement, whereby the Martu people would own more than 10 per cent of the company.

 

 

The announcement is below:

 

 

The Company advises that today Deputy President Sumner of the NNTT handed down the ruling that in respect of the Company's application for Mining Lease 45/1171 at Lake Disappointment that "the Act must not be done" meaning that without consent of the Martu Native Title Party the Mining Lease application must not be granted to Holocene Pty Ltd/Reward Minerals Ltd.

The current understanding of Reward via the Martu representative body WDLAC is that the Martu are not agreeable to allow access to the Company's Lake Disappointment tenement area without an appropriate Mining Agreement in place which includes commercial terms acceptable to the Martu people.

As indicated in the ruling it is not within the jurisdiction of the NNTT to set such commercial terms and conditions hence in the absence of agreement in respect of these matters the decision handed down is that the Act should not be done.

The Company is currently assessing the 81 page ruling and assessing its options in the matter. Communications with WDLAC/Martu in respect of a Mining Agreement have been ongoing for several months but no resolution has been forthcoming as yet.

The Company will immediately advise the Market should any outcome be achieved.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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