[miningmx.com] — GALAXY Gold was unfazed by the JSE’s ruling temporarily preventing it from a proposed listing, saying the action was “not a show stopper’.
James Duncan, a spokesperson for Galaxy, said the company was confident in its appeal to the JSE which had assured it it would let the process run its course. The JSE sought to minimise the delay in the listing process, he said.
“We have lodged an appeal, but the process is still not in our hands’, said Duncan. “Of course, Galaxy has development plans with time frames attached, but this is just a minor blip.’
Galaxy’s asset is the former Agnes Gold Mine near Barberton previously owned by Mzi Khumalo’s African Pioneer Mines (APM) which is in liquidation. Galaxy CEO, Peter Skeat, acquired the mine business from APM in 2008.
“All of the movable and immovable assets (including certain surface rights) were transferred to Galaxy Reefs. The old order mining rights could not be transferred until they had been converted to new order mining rights,” said Galaxy in a statement.
APM lodged the conversion application with the Department of Mineral Resources on time, but the department had not yet indicated how far the application was in the processing chain.
The new order mining rights need to be transferred to Galaxy Reefs, a wholly owned subsidiary of Galaxy Gold, in terms of Section 11 of the Mineral and Petroleum Resources Development Act before the listing can commence.
Director-general of the DMR, Sandile Nogxina, could not be reached for comment to clarify whether the Galaxy application would be resolved any time soon.
Galaxy has been working actively towards a listing on the Main Board of the JSE since April this year. “The board is reviewing other options in case the listing takes longer than anticipated,’ said Duncan.
He added: “We have not talked to the DMR because it is pointless to exert any pressure on them until the BEE transaction currently underway is completed and the DMR is satisfied with it.’
He said the company was not worried about shareholders jumping ship or losing interest in buying into the share due to the prolonged listing.
“We still believe Galaxy is an excellent company with a well placed mine asset,’ he said.
“The fact that the company is generating revenue within itself is a good sign and shareholders should not feel indifferently about the underlying value.’
