Prairie Mining Limited (ASX:PDZ - LSE:PDZ) has todayreleased an update on its Jan Karski Mine project in Poland.
PDZ completed an Environmental and SocialImpact Assessment and made submissions to the relevant administrative body foran Environmental Consent decision in October 2017, as required by law. However,Prairie is yet receive the required Environmental Consent decision from thePolish government.
Consequentially, PDZ has not been able to applyfor a Mining Concession for the project due to the delay in the issuance of anEnvironmental Consent decision - the proceedings of which are still in process.
The approval of the company's GeologicalDocumentation in 2015 conferred upon PDZ the legal right to apply for a MiningUsufruct Agreement over Jan Karski for an additional 12-month period beyondApril 2018, which precludes any other parties being granted any licence overall or part of the Jan Karski concessions.
The result of the Geological Documentationbeing approved was that PDZ became the only entity with a legal right to lodgea Mining Concession application over the area for the period up and until 2 April2018. The documentation covers areas of all four original Exploration Concessionsgranted to PDZ and includes the full extent of the targeted resources withinthe mine plan for Jan Karski.
Under Polish law, the Ministry of Environment(MoE) is obligated to provide approval (if all appropriate requirements aremet) within three months of a company making an application for a MiningUsufruct Agreement.
Get the latest articles straight to your inboxkeep me postedPDZ applied a Mining Usufruct Agreement in lateDecember 2017, and the three-month period has now been surpassed. The companyhas sought legal advice and concluded that failure of the MoE to grant theMining Usufruct Agreement is a breach of Polish law. PDZ has commenced legalproceedings accordingly.
The legal proceedings are undertaken by PDZwith an intention to protect its security of tenure over the Jan Karskiconcessions. If this step fails to result in the company receiving thenecessary Mining Usufruct Agreement, other parties may be able to apply for aMining Concession for all or part of the Jan Karski concession area. Hence, thecompany is considering all necessary future options to ensure its concessionrights are reserved.
PDZ has been listed on the Warsaw StockExchange since September 2015 and has a strong Polish shareholder base. Further,Australia holds the status of "Most Favoured Nation" with Poland, and thecountries signed a Promotion and Protection of Investment Agreement in 1991 stipulatingreciprocal protections for investments made by residents and entities of bothcountries, which includes licences for exploration and mining.
Last week PDZ announced it had entered into a non-disclosure agreementwith Jastrz?(TM)bska Sp???,ka W?(TM)glowa SA (JSW) to progress PDZ's Polish coal assets.
The company advised it would be updating the market as a when any futuredevelopments occurred.
PDZ is an early stage company. If considering this stock for yourportfolio you should take all public information into account and seekprofessional financial advice.
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