Eastern Platinum reaches settlement with AlphaGlobal
2020-06-26 07:21 ET – News Release
Ms. Diana Hu reports
EASTERN PLATINUM LIMITED ANNOUNCES SETTLEMENT WITH ALPHAGLOBAL
Eastern Platinum Ltd. has reached a settlement agreement with AlphaGlobal Capital Inc. 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, in exchange for the issuance of eight million common shares of the company at a deemed subscription price of 23.5 cents ($1.88-million), six million common share purchase warrants exercisable at 24 cents each entitling the holder to acquire one common share of the company for a period of two years, and the payment of nine million South African rand (five million South African rand on closing and one million South African rand each quarter-end starting on Sept. 30, 2020) ($720,000).
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.
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