HomeNewsPotential change in Hebei Zhongbo ownership could end Eastplats acquisition

Potential change in Hebei Zhongbo ownership could end Eastplats acquisition

Hebei Zhongbo Platinum Co.’s (HZP) acquisition of Eastern Platinum’s (Eastplats) South African PGM assets could possibly not proceed as first announced earlier this year.

Another Chinese entity, Beijing Hehe, has claimed its intention to become a significant/controlling shareholder of HZP and has stated that the transaction between Eastplats and HZP will not proceed.

Eastplats acknowledges receipt of a September letter purporting to be from HZP giving notice of termination of the share purchase agreements between the two companies.

The September letter, which made reference to previous correspondence from HZP claiming to have communicated a change in the controlling shareholder and legal representative of HZP as of February 16, 2015, was signed by Shuming Du, an individual whom the company had had no prior dealings whatsoever.

Eastplats’ dealings with HZP has been primarily Yunpu Ma and his advisors in South Africa and Canada. No such correspondence alluding to a change in shareholder or legal representative was previously received by the company.

As the company had reason to question the validity of the September letter, Eastplats conducted its own due diligence in order to seek clarification from HZP regarding its validity.

Eastplats has spoken to Canadian counsel for HZP and has been given to understand that the issuance of the notice by Beijing Hehe may be attributable to a shareholders dispute between the principal shareholders of HZP.

While the company continues to seek further information on this issue in order to clarify its impact on its dealing with HZP, it has been advised by Ma, on behalf of HZP, that it remains committed to the transaction with the company and is working toward a successful conclusion.

Until such time as Eastplats can verify the validity of the statements made by Beijing Hehe with respect to the status of the transaction, its understanding is that the transaction between Eastplats and HZP is proceeding.

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