[miningmx.com] — TRADING in the shares of exploration junior Miranda Mineral Holdings (Miranda) has been suspended at the request of the company, following a major threat to its financial viability.
Two independent non-executive directors, Clive Knobbs and Pine Pienaar, have also resigned from the company’s board.
According to a statement released to the JSE on Thursday, the two major shareholders in Miranda – Global PS Mining Investments (Global) and Yakani Resources (Yakani) – have demanded the repayment of loans made to Miranda.
In September last year the two companies loaned Miranda R20m, bringing the total amount of funding they had provided to R40m. Global and Yakani jointly also hold more than 40% of Miranda’s issued share capital.
According to a Miranda statement released in September, the loans were due to mature in January 2012 and “the board has the option to repay the loans in cash or converting them into Miranda equity”.
The extra funding was provided at the same time as the Miranda board agreed to remove former CEO and non-executive director Ron Nel
Nel controls the Ronald John Nel Trust which holds a 3.57% stake in Miranda. Nel had served an application on Miranda in terms of which he intended to apply to the North Gauteng High Court to place Miranda under supervision and start business rescue proceedings.
On January 10 – following an application by Nel – the North Gauteng High Court ruled that Miranda was “interdicted and restrained” from going ahead with a proposed rights issue that was announced in a circular to shareholders on December 9.
The interdict would stay in force “pending the hearing and final adjudication of the business rescue application, scheduled to be heard on 14 February, 2012”.
Thursday’s statement from Miranda said that the repayment demand from Global and Yakani “has further resulted in the jeopardising of the financial prospects of the company”.
“In the light of these events, the board of directors deems it prudent and has accordingly requested that the company’s securities be suspended on the JSE with immediate effect whilst the board considers the options available to the company.”
Miranda CEO Andrew Johnson was not immediately available for comment.
Miranda holds 14 coal prospecting rights and one coal mining right, mainly on the Klipriver coal fields around Dundee, Glencoe and Dannhauser in Kwazulu-Natal.
The company also owns various diamond and gold prospecting rights.
