Rimfire Pacific Mining (ASX:RIM) is kicking controversial Golden Plains Resources (GPR) from its Avondale scandium play by way of terminating an earn-in deal.
That marks the second termination handed to GPR by Rimfire this month. In early October, the company kicked the privately held partner off its Fifield scandium project; on Tuesday, it’s now done the same at its other scandium project, Avondale.
The bottom line is Rimfire doesn’t want to do business with GPR anymore – an entity not without its own curious history. The company is ultimately caught up in a battle between two men, both of whom believe they have the ownership rights the other claims.
One man allowed to act as its director has been previously bankrupt; another who has been convicted of fraud in the past cannot be a director.
With that kind of backdrop, it’s unsurprising RImfire has moved to terminate the deal for Avondale. GPR, in its view, has breached its contract anyway.
HotCopper users were quick to point out Fifield was likely a test case before getting rid of GPR from Avondale.
“Probably tried first with Fifield to ensure they indeed had a strong case, realised they did, and have gone ahead with the Avondale as well,” user TheAnalyst007 wrote.
“With such an easy case, you won’t need to rack up much in the way of costs to make an effective argument.”
What costs the user is referencing relate to the arbitration Rimfire wrote on Tuesday it expects to see come out of this.
“Rimfire expects that GPR will dispute the termination and seek to resolve the dispute through arbitration. Similar to the Fifield Project, Rimfire has offered to provide to GPR a revocable undertaking that it will not dispose of, create any encumbrance over or dissipate the Avondale Project or any mined product,” the company wrote on Tuesday.
RIM last traded at 5.9cps.
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