Tribune Resources has commenced legal proceedings in the Supreme Court of Western Australia against the Northern Star Resources group of companies.
The legal action relates to the East Kundana joint venture (JV) in Western Australia, where Tribune holds a 49 per cent interest and Northern Star Resources the remaining 51 per cent in the project.
Tribune alleged breaches of the JV agreement, where arrangements were not in place to allow each of the JV parties to take its proportional share of ore produced at East Kundana.
The company claimed that Northern Star had also failed to provide it with information in relation to the treatment of the JV ore in a timely manner.
Further to these allegations, Tribune stated Northern Star had purported to increase the fixed rate treatment charge without providing it with information that justified the proposed rate change.
Tribune managing director Anton Bills said it was unfortunate that the company had been forced into taking a legal action on what has to date been a very profitable mining and processing arrangement over many years.
“However, due to the actions by the manager of the joint venture, we are compelled to enforce our rights to ensure that all parties to the East Kundana joint venture (EKJV) are treated equally and fairly,” Bills said.
“We have tried many times to have these matters resolved through negotiation with the EKJV manager, however the responses to date have failed to recognise the rights of all JV participants.”
Northern Star responded to the legal proceedings, saying they were not material to the company and would be defended.
It has permitted Tribune to stockpile its share of surplus ore on the EKJV tenements until it could be removed for processing at third party facilities.
Northern Star has also offered undertakings in relation to mechanism for constructing the ore stockpiles.
Tribune could not predict the outcome of the proceedings at this stage.