GIB Mining Discloses Royalty Dispute Over Dante Project Tenement E69/3401

Anjali Anand

10 November 2026 01:59 PM AEDT

GIB Mining Discloses Royalty Dispute Over Dante Project Tenement E69/3401

Image Source: Krish Capital Pty Ltd

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GIB Mining Limited (ASX:GIB) has disclosed that it received a letter on 6 November 2026 from legal representatives acting for Terra Metals Limited (ASX:TM1) stating that the "scope of the Royalty is in dispute," relating to a 1% Net Smelter Royalty held by GIB over tenement E69/3401, which forms part of TM1's Dante Ti-V-Cu-Au-PGE Project in the Musgrave Region of Western Australia.

Key Points

GIB Mining holds a 1% Net Smelter Royalty on any mineral production from tenement E69/3401, originating from a Sale Option Agreement announced on 31 May 2018.
Terra Metals Limited received a letter from GIB's legal representatives on 6 November 2026 asserting that the scope of the Royalty is in dispute.
GIB Mining lodged an absolute caveat over E69/3401 on 25 February 2026 (dealing 753128), which Terra Metals disputes as beyond the terms of the 2018 agreement.
Terra Metals confirms the existence of the 1% net smelter return royalty but states no mining has commenced and no royalty is currently payable.
GIB Mining stated it is confident in its legal position regarding the Royalty.

Origin and Terms of the Net Smelter Royalty

According to the filing, GIB Mining Limited, formerly known as Gibb River Diamonds Limited, holds a 1% Net Smelter Royalty on any mineral production from tenement E69/3401 under a Sale Option Agreement dated 31 May 2018. The agreement was originally between POZ Minerals Limited, now GIB Mining Limited, and 97992001 Pty Ltd, a wholly owned subsidiary of Terra Metals Limited and the registered holder of E69/3401. Terra Metals confirmed the royalty is disclosed in note 18 of its 2026 Annual Report, and that no mining has commenced and no royalty is currently payable.

Caveat Lodged and Dispute Over Royalty Scope

GIB Mining lodged an absolute caveat over E69/3401 on 25 February 2026 under dealing number 753128. Terra Metals disclosed that GIB has asserted rights beyond the terms of the 2018 agreement, including in relation to the scope of the royalty, and that Terra Metals disputes those additional claims and GIB's entitlement to maintain the caveat. Terra Metals also stated that a further royalty deed proposed by GIB in June 2026 has not been agreed or executed. GIB Mining's Executive Chairman Jim Richards had been seeking to engage with TM1 to update the Sale Option Agreement to a full set of legal documents regarding the Royalty.

Impact on Tenement Title and Exploration Activities

Terra Metals stated in its accompanying disclosure that the caveat does not affect the subsidiary's title to E69/3401 or the conduct of current exploration activities on the licence. However, Terra Metals noted the caveat may restrict registration of future dealings with or encumbrances over E69/3401 while it remains in place. E69/3401 hosts the Southwest discovery and portions of Terra Metals' reported Basal Reef Mineral Resources. GIB Mining stated in its filing that it is confident in its legal position and looks forward to progressing the matter with TM1.

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