Lonmin could have secured 50% of the Parkin exploration project by funding $11m of an exploration programme before September 2019. The payment included refunding Wallbridge for buying SA’s Impala Platinum’s stake in the prospect.
There were other exploration projects in the Sudbury Basin in a second joint venture with Lonmin.
“At September 30 2017, Lonmin did not meet the minimum funding requirements to maintain their options under the Sudbury Camp and North Range Joint Venture agreements and subsequent amendments, with a shortfall of approximately $1.2m,” Wallbridge said.
By tweaking the agreements, expenditure for that year would be rolled over into the next year’s exploration expenditure and that $750,000 would be spent in the first nine months of the year on exploration, with Lonmin retaining its options under the joint venture agreements.
Lonmin has subsequently sold its stake in Wallbridge.