BRISBANE, AUTRALIA--(Marketwired - Sept. 13, 2013) - Intrepid Mines Limited (IAU.AX)(IAU.TO) ("Intrepid" or the "Company") advises that the State Administrative Tribunal ("Tribunal") in Surabaya, East Java, has handed down judgment in the lawsuit brought by the Company, to set aside the transfer of the Tujuh Bukit mining leases (IUP Eksplorasi and IUP Operasi Produksi) from PT IMN to PT Bumi Suksesindo.
Intrepid became aware in December 2012 that the Tujuh Bukit IUPs, or mining leases, had been transferred by the Company's Indonesian joint venture partner, PT IMN, to PT Bumi SuksesIndo ('BSI'), which was initially a subsidiary of PT IMN. Since the date of transfer of the IUPs, the shareholding in BSI had changed such that PT IMN was no longer a shareholder in that company. Indonesian legislation provides that IUPs are not transferable, with an exception for transfers to majority-held subsidiaries. Intrepid therefore instituted proceedings in the State Administrative Tribunal in Surabaya, seeking that the decisions of the Bupati of Banyuwangi (the local government chief executive) to approve the transfer of the IUPs and the subsequent changes in shareholding in BSI, be set aside.
On 12 September 2013, judgment was handed down in the matter and whilst the Tribunal was split in its decision, two judges ruled against the Company on a procedural point of lack of legal standing. They opined that the Company had no standing to challenge the actions of the Bupati of Banyuwangi in circumstances where it was not yet a shareholder in PT IMN. They did not consider the merits of the case. The third judge, in his dissenting verdict, accepted the Company's standing to institute proceedings and went on to examine the merits of the matter, concluding that the Bupati of Banyuwangi had acted contrary to Indonesian law in approving the transfer of the IUPs and subsequent corporate reorganisation of BSI.
The Company's Executive Chairman, Ian McMaster, noted: "We believe that the findings of the dissenting judge, Judge Tri Cahya Indra Permana, provide a solid foundation for an appeal to the State Administrative Appeals Court of Surabaya, which we shall be pursuing."
The decision of the Tribunal is not final and binding on the parties until further appeals have been exhausted. The Company has fourteen days within which to lodge an appeal, which it intends to do.
Separately, the Company confirms that it has (through its wholly-owned subsidiary, Emperor Mines Pty Limited), filed an Arbitration Notice with the Singapore International Arbitration Centre, commencing arbitration proceedings against PT IMN and the other joint venture parties in respect of breaches of the various joint venture agreements in place between them and the Company.
|Ian McMaster (Executive Chairman)|
|Colin G. Jackson (Deputy Chairman)|
|Laurence W. Curtis (Non-executive Director)|
|Robert J. McDonald (Non-executive Director)|
|Alan Roberts (Non-executive Director)|
|Adrianto Machribie (Non-executive Director)|
|Garry Gill (Company Secretary)|
|Stock Exchange Listing|
|ASX and TSX symbol: IAU|
|Taurus Funds Management 8.5%|
|Acorn Capital 7.3%%|
|Van Eck Associates 7.3%|
|Surya Paloh 5.0%|
|7,068,276 unlisted options|
|2,574,137 unlisted share rights|
|Matters related to shares held, change of address and tax file numbers should be directed to:|
|Computershare Investor Services|
|GPO Box 2975, Melbourne, Victoria 3001, Australia|
|Telephone: 1300 805 505|
|+61 3 9415 4000|
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Intrepid Mines Limited
Office: +905 337 7673
Mobile: +416 605 5120