Northern Manganese (ASX:NTM) will receive a payment of $2.8 million from the Northern Territory Government in return for the surrender of its Groote Eylandt sea or ‘wet’ tenements.
This followed the NT Government’s move to declare a general reservation over the waters surrounding Groote Eylandt.
The reservation would have a severe negative impact on the four tenements.
Northern Manganese had then submitted a financial claim setting out a number of proposed terms and conditions including a compensation sum.
This led to the agreement for the payment.
The company still holds applications for four Islands and three ‘wet’ tenements in Blue Mud Bay as well as two Island applications within the Groote Eylandt project area.
While the Islands are subject to negotiations, the wet tenements still fall within the moratorium.
Northern Manganese is reviewing its funding agreements and capital raising initiatives going forward.
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