Korab Resources (ASX:KOR) has confirmed that the Supreme Court of the Northern Territory has quashed the renewal of Mineral Leases MLN542 and MLN543, part of the company's Rum Jungle Project near Batchelor, due to a reasonable apprehension of bias.
The leases, which cover the Sundance Gold Mine, were originally renewed in December 2024 along with other tenements in the area until Dec. 31, 2033.
However, the landowner, Vinnie Nominees, acting as trustee for the Finocchiaro Family Trust, requested a judicial review of the renewal decision.
The court found that the renewal decision, made by a Delegate of the Minister for Mining and Energy, was legally flawed due to the Delegate’s concurrent role as complainant in a criminal case against Ross Finocchiaro, the sole director of Vinnie Nominees.
Finocchiaro was charged in June 2024 with interfering with Korab's authorised activities on the same leases.
Despite this pending case, the Delegate proceeded to renew the leases in December 2024, raising concerns over impartiality.
Although Korab took a non-active role in the judicial review, the Supreme Court ultimately ruled to void the lease renewals.
The matter has now been referred back to the Department of Mines and Energy for reassessment by a new decision-maker with no personal involvement in the criminal proceedings.