Regis Resources begins legal proceedings over blocked project
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The news: Gold miner Regis Resources said it has commenced legal proceedings in the Federal Court, after an environmental protection declaration by environment minister Tanya Plibersek blocked development at the McPhillamys gold project in New South Wales.
The numbers: Regis shares were down 5.4% to 2.47 by 1:15pm AEDT, tracking a wider sell off in gold socks on the ASX.
The context: Regis said it has commenced judicial review proceedings challenging Plibersek's decision, which was made by declaration under Section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act 1984.
The miner is seeking a declaration from the Federal Court that the Section 10 declaration is legally invalid, that the Section 10 application be redetermined by a different minister, and an award of costs to Regis for legal proceedings.
In August, Plibersek's decision saw Regis revisit the $190 million carrying value of the under-development McPhillamys project, and the miner's ability to continue to report the project's ore reserves. At the time, the group said it was assessing the decision and was considering "all legal options".
What they said: "Whilst it is difficult to predict how long the court process will take, Regis is hopeful that it will be resolved by mid-2025," Regis said in a statement.
The source: ASX announcement
