/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, BC, June 26, 2020 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") today announced that
the Company has reached a settlement agreement with AlphaGlobal
Capital Inc. ("AlphaGlobal") to dismiss all claims against
the Company and its subsidiaries and to release the Company from
any and all claims that AlphaGlobal may have against the Company or
its subsidiaries (the "Claims"), in exchange for the
issuance of 8,000,000 common shares of the Company (each a
"Common Share") at a deemed subscription price of
$0.235 CDN (CDN$1,880,000), 6,000,000 common share purchase
warrants exercisable at $0.24 CDN
each entitling the holder to acquire one Common Share of the
Company for a period of two years (the "Warrants"), and the
payment of South African Rand ("ZAR") 9,000,000
(ZAR5,000,000 on closing and
ZAR1,000,000 each quarter end
starting on September 30, 2020)
(CDN$720,000) (the "Settlement
Transaction").
The Settlement Transaction received conditional approval by the
Toronto Stock Exchange (the "TSX"). The Common Shares,
the Warrants and the Common Shares issuable upon exercise of the
Warrants will be subject to a hold period of four months and a day
as of the date of issuance in accordance with applicable securities
laws.
The Claims against the Company were first initiated by
commencement of litigation in 2017 in South Africa and continued by litigation in
2018 in the British Virgin Islands
in relation to the payment of amounts alleged to be owing under a
2007 promissory note entered into by the Company and AlphaGlobal.
AlphaGlobal sought payment of the amount of ZAR 30,797,464 (CDN$2,463,797) plus an amount that AlphaGlobal
claimed was owing for default interest from 2007, for an estimated
total claim in excess of ZAR
170,000,000 (CDN$13,600,000). The Settlement
Transaction will settle all matters related to the Claims and any
litigation outstanding between the parties.
Diana Hu the CEO of Eastplats
stated "this settlement closes a long-standing chapter and
eliminates a significant contingency for the Company, created years
ago by the previous management of the Company." Ms. Hu further
added "current management continues to focus on operations of the
Retreatment Project (as defined below) and other potential projects
and opportunities to create value for all stakeholders."
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of platinum
group metals ("PGM") and chrome assets in the Republic of
South Africa. All of the Company's
properties are situated on the western and eastern limbs of the
Bushveld Complex, the geological environment that hosts
approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River mine currently include
re-mining and processing its tailings resource, with an offtake of
the chrome concentrate from the Barplats Zandfontein UG2 tailings
facility ("Retreatment Project").
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's most recent Annual
Information Form available under the Company's profile on
www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: timing of the settlement and timing of
the issuance of common shares of the Company. These forward-looking
statements are based on assumptions made by and information
currently available to the Company. Although management
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. By
their very nature, forward-looking statements involve inherent
risks and uncertainties and readers are cautioned not to place
undue reliance on these statements as a number of factors could
cause actual results to differ materially from the beliefs, plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors include, but
are not limited to, unanticipated problems that may arise in our
production processes, commodity prices, lower than expected grades
and quantities of resources, need for additional funding and
availability of such additional funding on acceptable terms,
economic conditions, currency fluctuations, competition and
regulations, legal proceedings and risks related to operations in
foreign countries.
All forward-looking statements in this press release are
expressly qualified in their entirety by this cautionary statement,
the "Cautionary Statement on Forward-Looking Information"
section contained in the Company's most recent Management's
Discussion and Analysis available under the Company's profile on
www.sedar.com. The forward-looking statements in this press
release are made as of the date they are given and, except as
required by applicable securities laws, the Company disclaims any
intention or obligation, and does not undertake, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited