South Pacific wins PNG court injunction on EL2558

Executive Summary

• The National Court of Papua New Guinea upheld South Pacific Metals Corp.’s interim injunction against K92 Mining Ltd. and the Mineral Resources Authority (MRA) concerning exploration licence EL2558.
• The court order restrains K92 Mining from entering, drilling, or developing infrastructure within the EL2558 area and prevents the MRA from processing any lease applications by K92 Mining for that land.
• South Pacific Metals was awarded costs and may pursue mediation or proceed to trial on the core issue of exclusive rights under the mining act.

Key Details

• Injunction Scope: Bars K92 Mining from any activity (e.g., sterilization drilling, tailings storage facility, solar farm) that would interfere with EL2558; bars MRA from accepting/processing lease applications for the same area.
• Court Decision: The interim injunction remains in force until further order; costs awarded to South Pacific Metals Corp. (SPMC).
• Potential Next Steps: Parties may opt for non‑binding mediation or proceed to trial, where the primary issue will be interpretation of the Mining Act regarding exclusive lease rights for EL2558.
• Background: SPMC initiated legal action after alleged trespass and interference by K92 Mining on its exploration licence.
• Strategic Importance: EL2558 is a key exploration target for SPMC; maintaining exclusive control is critical to preserving the integrity of its exploration program and future development plans (including potential tailings storage).
• Company Statement: South Pacific Metals will continue to protect its rights in EL2558 and provide updates as the situation evolves.

Notable Quotes

“South Pacific’s objective is to safeguard its legal rights, maintain the integrity of its exploration programs and ensure that the EL2558 licence area remains free from unauthorized activity.” – Company release.