LONDON (Alliance News) - Hunter Resources PLC on Monday said it will consider formal arbitration under Peruvian law if the sellers of a stake in the Pampamali gold, silver and base metal project "continue to delay" the company's acquisition of a 51% stake.
According to Hunter Resources, the current owners of the Pampamali project are legally obliged to transfer the title of the tenements to a new locally incorporated company referred to as HOLDCO. However, that transfer has not taken place.
H&P Contratistas Mineros SAC and CMP Compañia Minera Pampamali, both Peruvian companies, are the current owners of the project.
Gold Hunter SAC, which is Hunter Resources' Peruvian subsidiary, is to hold 51% of the locally incorporated company, with the sellers to retain the minority. Hunter Resources exercised its option to gain a controlling interest in the Pampamali project on July 1, having acquired Gold Hunter SAC in June the prior year.
"Despite the continuing efforts of the company, the title of the tenements has not yet been transferred to HOLDCO in accordance with the binding contractual obligations. No funds are due to the vendors until the successful transfer of the titles. The company is making every effort to ensure the transaction is completed by the vendors in accordance with their legal obligations," Hunter Resources said in a statement.
"If the vendors continue to delay the process, the company will seek to enforce the terms including if necessary instigating formal arbitration under Peruvian law," Hunter Resources added.
Shares in Hunter Resources were untraded at 0.255 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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