Alliance to withhold Four Mile capex contribution
PERTH (miningweekly.com) – The board of ASX-listed Alliance Resources on Thursday said it had made the decision not to contribute the 2015 capital expenditure (capex) planned for the Four Mile uranium project, in South Australia.
Earlier this month, Alliance lodged a grievance with the Supreme Court of Australia against joint venture partner Quasar Resources, in an effort to gain control of its productions share from the Four Mile mine.
Quasar had previously passed the 2015 programme and budget for the uranium project, without Alliance’s support, saying at the time that it would stockpile all the 2014 and 2015 production from the mine, thereby generating no revenue in 2015.
Alliance told its shareholders on Thursday that the company had decided not to participate in the 2015 capex after Quasar refused to sell its share of the Four Mile product, thereby depriving Alliance subsidiary Alliance Craton Explorer of funds that it would have used to defray its share of expenses.
Alliance estimated that since the start of mining in June, until the end of November this year, its share of production from Four Mile would have amounted to 367 119 lb, worth an estimated A$16.3-million.
Between December 2014 and December 2016, the company’s share of the Four Mile production was estimated to be around 502 422 lb, worth an estimated A$22.3-million.
As a result of the decision, Alliance would have no outgoing association with the Four Mile project after December 2014 and until January 2016, and the company’s interest in the Four Mile project would be reduced from 25% to around 15% by the end of December 2015.
In July this year, Alliance announced that it was hunting for a buyer for its interest in the Four Mile project, saying it preferred to focus on its company-operated assets, including ventures in Chile.
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