Weatherly International (LON:WTI) said arbitration proceedings regarding the Tambao manganese deposit Burkina Faso continue.
The announcement follows the African nation’s assertion that the International Chamber of Commerce arbitration process taking place in Paris was “inadmissable”.
The ICC Tribunal hearing also warned Burkina Faso that it should pursue at its own risk a deal with Pan-African Minerals that would see up to US$650 million ploughed into the project.
Wadi Al Rawada Investments held the rights to exploit the manganese deposits.
Weatherly, meanwhile, has an agreement with Wadi, and completed a feasibility study, which was submitted to the authorities in September 2008.
However, Burkina Faso then refused to recognise Wadi’s rights to Tambao.
As a result, Wadi began arbitration proceedings before the ICC in Paris to enforce its exclusive rights agreement in August last year.
“The ICC Tribunal hearing the proceedings has recently issued a preliminary decision dismissing Burkina Faso's position that the arbitration is inadmissible and confirming that the arbitration will go forward,” a statement from Weatherly explained.
“A final decision on the merits is expected for 2014. The ICC Tribunal has also indicated that notwithstanding the Pan African agreement, all options for the resolution of the ICC arbitration proceedings, including the recognition of Wadi's existing rights to the TambaoProject, remain open.
“The Tribunal has expressly indicated that Burkina Faso would therefore implement the agreement with Pan African at its own risk and peril pending the determination of the arbitration proceedings."