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Tribune Resources suing Northern Star over gold JV ore share

Tribune Resources Ltd. started proceedings in the Supreme Court of Western Australia against the corporate entities of its partner in the East Kundana gold joint venture in Western Australia, Northern Star Resources Ltd., alleging a breach of agreement.

The company alleged that the joint venture company, EKJV Management Pty. Ltd., did not ensure that all joint venture parties could take their proportional share of ore produced from the project.

Northern Star owns a 51% interest in the project, Tribune owns 36.75%, and Rand Mining Ltd. holds the remaining 12.25%.

Additionally, Tribune alleged that Northern Star (Kanowna) Pty. Ltd. failed to provide information in a timely manner related to the treatment of ore, including how much East Kundana ore the Kanowna mill can process.

The complaint also alleged that Kanowna purported to increase the fixed-rate treatment charge without giving Tribune any information to justify the proposed rate change.

Tribune said Dec. 23 that it will seek orders to enforce its rights under the joint venture from Jan. 1, 2020, by ensuring that arrangements are in place for each partner to take its proportional share of gold from the project.