Alara Resources Limited (ASX: AUQ), a base and precious metals producer and explorer with projects in Oman, has announced that its 51%-owned joint venture company, Al Hadeetha Resources LLC (AHRL), the operator of the Al Wash-hi Majaza Copper-Gold Mine in Oman, is facing legal action. The proceedings have been initiated by 16 residents from villages near the Al Wash-hi Project in the Primary Administrative Circuit Court in Ibra, Oman. Several Omani government authorities are also named as respondents, including the Ministry of Energy and Minerals and the Environment Authority.
The plaintiffs are seeking orders to suspend AHRL’s project-related activities at the Al Wash-hi Project. Furthermore, they are demanding compensation and a declaration that the Project licences are invalid. Alara Resources is focused on operating the Al Wash-hi Majaza Copper-Gold mine and concentrate production facility in Oman. The Company also continues exploration activities at its other Omani projects.
AHRL disputes the claims made and has appointed legal counsel in Oman to defend the proceeding. The company asserts that the proceedings are at an early stage and that there has been no change to the status of the Al Wash-hi Project. AHRL continues to operate the Project under its existing licences, permits, and governmental approvals.
Alara Resources will continue to monitor the situation and provide further updates to the market as material developments occur, in accordance with its continuous disclosure obligations. The announcement was authorised for release by the Board of Directors of Alara Resources Limited.
