HomeNewsEastplats advised of alleged change in BEE ownership

Eastplats advised of alleged change in BEE ownership

Eastplats has revealed that certain third-party shareholders (the BEE shareholders) of Gubevu Consortium Investment Holdings and Lion’s Head Platinum have “purportedly relinquished” their interests in those companies in varying amounts to either Serina Services AG or Ingwenya Incorporated.

Gubevu is the company’s BEE partner in Barplats Investment and Lion’s Head is a BEE compliant corporation in Eastplats’ Mareesburg project.

The company has been advised that the BEE shareholders originally acquired these shares from Serina and Ingwenya, and these shares have purportedly now reverted to them.

Neither Eastplats nor its subsidiaries were parties to these purported transactions and has not been provided with direct confirmation of or further information regarding these transactions.

On 30 June 2016, two days following the announcement of the proposed sale of the Crocodile River mine, former management purportedly caused the company to enter into certain “share purchase agreements” with Serina and Ingwenya.

Those agreements contemplated payment by Eastplats of approximately US$13.4 million upon the change of control of the company at the 2016 AGM and former management caused the funds to be paid.

The company has met and discussed the above issues with the Department of Mineral Resources in South Africa. As previously disclosed, South African mining regulations require certain levels of black economic empowerment in respect of mining rights.

The company is working to understand the nature and possible implications of the above transactions and, if necessary, to reorganise or remedy its BEE arrangements.

Feature image credit: Eastplats (Crocodile River mine)