Iris Corp unaware PNG land sub-leased to third party

KUALA LUMPUR: Iris Corporation Bhd is unaware the proposed development of 100,000 hectares of land Papua New Guinea (PNG) under a joint venture with Alvery Resources Ltd had been sub-leased.

 

It said on Wednesday it did not have any knowledge whatsoever the 100,000ha had already been subleased by the owners to any third party.

 

Iris Corp said it relied on Albvery's representations and warranties when it agreed to team with up the latter,  pending the completion of an on-going legal due diligence.

 

"The agreement terminates automatically in the event it remains conditional and the subleased Land is not free from all/or any encumbrances (where the JV does not acquire a clean and valid sublease from the proprietors)," it pointed out.

 

To recap, on April 14, 2014, Iris had signed the JV agreement with Alvery Resource to  develop 100,000 hectares of land in Oro Province of PNG.

Iris Corp added the JV agreement also depended on the fulfilment of several conditions precedent primarily on the validity of the sublease and approvals on the proposed 100,000 ha of land.

"The company is being advised from time to time by the authorities in the Department of Lands and Physical Planning, Office of Registrar of Titles of PNG on the legality of the subleased Land to Musa Century Ltd and will inform Bursa upon receipt of conclusive information on the status of the JV .

 

"The company has no knowledge whatsoever about any legal action being taken by any third party in PNG with regards to the subleased Land and confirm it is not a party to any such suits," it said.