PhokaThaba liquidation bid could delay PLA acquisition, warns Jubilee
JOHANNESBURG (miningweekly.com) – A liquidation application filed by Westdawn Investments, trading as JIC Mining Services, against ASX-listed Platinum Australia (PLA) subsidiary PhokaThaba Platinum could delay the finalisation of Aim- and JSE-listed Jubilee Platinum’s acquisition of PLA.
The application against PhokaThaba was lodged with the High Court of South Africa North Gauteng division on May 28.
In an announcement on the ASX, PLA explained that PhokaThaba had taken over as operator of the Smokey Hills mine from JIC in January 2012. Following the termination of JIC’s contract, PhokaThaba had advised JIC of claim for outstanding payments.
This was disputed by JIC, which, in turn, said it had outstanding claims and requested PhokaThaba to makes certain payments to JIC’s creditors. PhokaThaba declined to pay the JIC creditors as it disputes JIC’s claims.
Under the terms of the implementation deed between Jubilee and PLA, the liquidation application was considered a regulated event.
PLA postponed the first court hearing for the transaction with Jubilee, which had been scheduled for June 10 to June 20 to enable it to deal with the legal matter. This postponement falls within the execution timeline set for the transaction, the completion of which was now targeted for the end of July.
Further, the condition precedent for securing financing has, by mutual agreement between Jubilee and PLA, been amended to coincide with the second court hearing for the transaction.
This extension will enable the Jubilee board to evaluate the merits of the liquidation application and to continue engaging with PLA towards reaching an acceptable solution.
“The development with the liquidation application against PhokaThaba is regrettable due to the potential delays in the execution of the transaction,” commented Jubilee CEO Leon Coetzer.
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