R&E shareholders approve settlement

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[miningmx.com] – RANDGOLD & Exploration (R&E) shareholders gave the official nod to a R150m settlement with PwC regarding alleged negligence during the period in which the late Brett Kebble ran the mining company.

R&E launched a civil action against PwC in 2008 alleging that the auditing firm had failed to spot misappropriations of shares in R&E by Kebble. The action consisted of 16 claims against PwC amounting to billions of rands.

However, after nearly six years of litigation which had cost R&E R38m in legal fees, it decided to agree to a R150m settlement with PwC following arbitration.

The PwC offer of R150m (R2.10/share) represents 80% of the group’s NAV [net asset value] and 99% of its weighted average share price which makes the offer significant, R&E said in April.

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