Monument Mining (TSX:MMY) has removed Tuckanarra Resources as joint venture manager of the Tuckanarra Gold Project in Western Australia.
The company issued the removal notice through its subsidiary Monument Murchison on 25 September following a material breach of their JV agreement. Monument holds a 20% free-carried interest in the project, while Tuckanarra is a wholly owned subsidiary of Odyssey Gold (ASX:ODY).
The breach reportedly centres on Tuckanarra’s unauthorised entry into a toll milling agreement with Gylden Resources and Kirkalocka Gold on 20 May. According to Monument, Tuckanarra acted unilaterally without required authority under the JV agreement or Monument Murchison’s consent.
Under clause 5.1 of the exploration JV agreement, Tuckanarra’s removal became effective after the breach continued for more than 30 days. Monument notified Odyssey Gold of the decision on 8 October and requested a management committee meeting to appoint a replacement manager, which cannot be Tuckanarra or any related body corporate of Odyssey.
Odyssey issued a dispute notice on 24 September challenging Monument’s breach notice. Monument says it will comply with the dispute resolution process, including mediation requirements, but maintains the dispute does not suspend its accrued rights under the agreement.
Monument Mining is a Canadian gold producer that fully owns and operates the Selinsing gold mine in Malaysia and the Murchison Gold Project in the Murchison area of WA.
Write to Paula Fabe at Mining.com.au
Main image: Monument Mining
