London listing of Blyvoor Gold on road to nowhere amid deadlock on dumps purchase deal

Typical South African gold dumps

KATORO Gold’s proposal to list a new gold producer on the London stock exchange (LSE) treating dumps at the former Blyvooruitzicht gold mine looks like it is going nowhere as partner Target Mine Consulting (TMC) still does not have ownership of those dumps.

The dumps belong to Peter Skeat’s unlisted Blyvoor Gold company. He is trying to sell them but on October 28 he told Miningmx he had not sold them to Katoro/Target.

He confirmed Blyvoor Gold had previously granted two, six month options to Target CEO Jan Brits to purchase the dumps, but these had lapsed because Brits had failed repeatedly  to come up with the money. “Our legal advice is very clear. There is no sale and we are now talking to other buyers,” he said at the time.

Nearly a month later, Skeat confirms that is still the case and he is well advanced in talks with other potential buyers which means time is running out fast for Brits who faces a deadline of November 30 to clinch the deal for Katoro.

Katoro released a statement to the LSE on October 27 saying the listing of what it called the Blyvoor Joint Venture project was dependent on a number of conditions precedent.

The key condition was that by November 1 this year it would receive “irrevocable written confirmation” from Blyvoor Gold Capital (owned by Skeat) that it had accepted payment of R140m “… in full and final settlement of any and all claims it may have against TMC or BGO” (Blyvoor Gold Operations – a corporate entity owned by TMC).

On November 9 Katoro published an update on the LSE news service saying Target had requested – and had been granted – an extension to comply with conditions precedent due before the 30 of November”

But the only condition precedent due before November 30 was  the one about confirmation of payment for the dumps on November 1. All the others are due on November 30 anyway, or at later dates.

Katoro said the reason for Target’s request involved “delays caused by the local elections held in South Africa.”

That seems a strange reason to delay an important corporate deal between private businessmen who typically would be available 24/7 to finalise it.

Katoro executive chairman Louis Coetzee declined to comment when asked by Miningmx about this purported reason for the delay. He also declined to provide contact details for his partner Brits.

He told Miningmx: “All we have to say is in our announcement. We will make another public announcement when it is appropriate.”

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