The miner's clash with the Ministry of Minerals, Energy and Water Resources came to light last month when the Australian firm appealed to Vice President Ponatshego Kedikilwe over the rejection of the request to extend the lease.Mount Burgess said it had spent Aus$14 million (P115 million) over the years, on various studies and activities on two Ngamiland sites, eventually proving mineralisation of 33 million tonnes of both zinc and silver. It said it had spent an additional Aus$1.2 million in the 14 months it allegedly took for the Ministry to consider and eventually reject its application.
In papers filed with the Australian Securities Exchange (ASX) on Tuesday, the miner said it had received legal opinion indicating a lawsuit against the rejection of the extension as well as damages for operational costs, would be successful.The papers suggest that the appeal made to Kedikilwe failed as it was referred to the relevant minister, Kitso Mokaila, according to his published response, did not find reasons to grant the extension.
"We conclude that the rejection of the application for extension was unlawful and in direct contravention of the common law," Mount Burgess CEO, Nigel Forrester said, quoting a legal opinion document.
