Replies to post #19978 on Empire Energy Corporation Intl. (fka EEGC)

[pitts77h]

In addition.... (whew)

Here's the actual contract governing the license. That "expected to but not REQUIRED to" suddenly sounds a whole lot more like "Yea, they really HAVE to."

http://www.mrt.tas.gov.au/pls/portal/docs/PAGE/MRT_INTERNET_PAGE_GROUP/MRT_EXPLORATION_AND_MINING/MRT_EXPLORATION_LICENCES/GENERAL%20_CONDITIONS/EXPLORATION_LICENCE_DOCUMENT.PDF

These are the relevant parts:

4 Conditions of Licence
In addition to the conditions imposed under the Act, this Licence is issued subject to the following conditions:
(f) the Licensee must comply strictly with:
(i) the Licensee’s covenants in clause 6;

5 Licensee’s failure to comply with a condition
5.1 Minister may remedy default
The Minister, or a person appointed by the Minister, may take whatever action is necessary to remedy a breach of a Legislative Requirement or Licence condition, without prejudice to any other available remedy.

5.2 Licensee must reimburse Minister
The Licensee must reimburse to the Minister all costs incurred under clause 5.1 within seven days of demand, together with interest at the Interest Rate, calculated from the date of expenditure by the Minister to the date of payment by the Licensee.


6 Licensee’s covenants
6.1 Covenant

The Licensee covenants with the Minister as follows:
(d) to complete the Exploration Program and meet the Expenditure Commitment punctually;
(g) to comply with the provisions of the Mineral Exploration Code of Practice;

Oh, and as for EEGC's claim that MRT owes them bigtime for abusing their intellectual property? There's this clause:

10.1 Grant of licence
Subject to clauses 10.2 and 10.3, the Licensee grants to the Minister a permanent, irrevocable, free, world-wide, non-exclusive licence (including a right of sub-licence) to use, reproduce, publish, adapt and exploit the Intellectual Property in all Reports, for any Crown purpose.

[rigman]

One other point, why would anyone invest in a company that can't guarantee that they will have a license in two months time?

IMO MRT only granted the license because of pressure from the minister who I believe was convinced by Bendal that the money to drill would be raised by the RO. This did not happen and I do not think Empire will get any further support from the minister.

Empire have had a license to drill for more than 10 years now and I believe MRT are fed up of with all the excuses and lack of results are keen to see someone else given the license. IMO MRT would prefer to have the area available than have it tied up with a non-performer like Empire.

I also believe, contrary to what some posters have said, that there are other companies looking for acreage in Tasmania