Intrepid Mines Limited (ASX: IAU) shares have crashed by 50% this morning, after its Indonesian partner on the Tijuj Bukit gold and copper project, PT Indo Multi Niaga, suspended operations without consulting the company first. PT Indo Multi Niaga also requested several members of senior management, including all expatriate employees seconded from Intrepid, to leave the site immediately. Intrepid is attempting to establish discussions with both new and original shareholders of PT Indo Multi Niaga, regarding arrangements to allow the resumption of drilling activity at the earliest opportunity. No reason has been given for the moves by PT Indo Multi Niaga, but the Australian Financial Review reports that souring relations were to blame. Intrepid stated that it is in compliance with and always has been in compliance with all of its obligations under the joint venture agreements in place and applicable law. Intrepid has also financed all of the project expenditure to date, being US$95m, including financing the original shareholders of PT Indo Multi Niaga to allow them to meet their 20% obligation commitments in excess of the initial amount of A$50 million. This situation illustrates one of the risks faced by companies operating joint ventures and projects in foreign countries. Due to foreign ownership laws, 20% of the Tujuh Bukit project and the title on the tenement, is held by a young Indonesian couple, which means Intrepid's name is not on the title of its main asset. Newcrest Mining Limited (ASX: NCM) has a similar arrangement for its Gosowong project in Indonesia. Indonesia changed its project ownership rules in April 2012, requiring at least 51% of any project to be locally owned by the 10th year of production, which has implications for both Intrepid and Newcrest. Investors will be hoping Intrepid doesn't share its fate with the likes of Kagara Ltd (ASX: KZL) and Mirabela Nickel Limited (ASX: MBN). Kagara was forced to call in administrators and Mirabela Nickel was forced to raise $120m in equity. If you're in the market for some high yielding ASX shares, look no further than our "Secure Your Future with 3 Rock-Solid Dividend Stocks" report. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry the report is free for only a limited time. source:http://finance.ninemsn.com.au/newsbusiness/motley/8503684/is-this-the-end-for-this-intrepid-miner Everything was going well then all of a sudden BANG - dont be surprised if these sh**ty little 'gold diggers' blackmail Intrepid. Read through the announcments chronologically - NO INDICATION NO WARNING http://intrepidmines.com.au/investor-relations/news-and-announcements/ Freakin hell! I hate socialistic governments and their crony little business offspring
Their share price fell almost 60% today And im not surprised as a result Newcrest is down 4% today as well
