[miningmx.com] — NKWE Platinum said on Monday it would place the relisting of its Australian-listed shares on the back burner because of continued uncertainty over the group’s hold on key assets in South Africa.
Nkwe’s shares were last traded on December 7, shortly after the Constitutional Court set aside the prospecting rights Nkwe’s major shareholder, Genorah Resources, held on two farms in the Bushveld Complex.
The group’s shares lost close to a quarter in the wake of the ruling, going for 45 Australian cents on its last day of trade after reaching levels of around 60 cents in November.
Nkwe said on January 13 it would request the Australian Stock Exchange (ASX) to recommence trading its shares within a week.
“While it was the intention of the company to request a re-listing of its securities on the ASX, the board has decided, based on the continued perceived uncertainty regarding its assets in South Africa, to remain suspended for a further period,’ read Monday’s statement.
“The board believes this to be a prudent course of action to ensure shareholder value is maintained and shareholders are able to trade its securities in a fully informed manner with the status of its current asset base positively clarified.’
Nkwe once again reiterated that it has obtained the backing of the Bengwenyama community – the very same community which brought the court application against Genorah – in its new application for prospecting rights on Eerstegeluk and Nooitverwacht farms.
BENGWENYAMA VS BENGWENYAMA
The department of mineral resources’ interpretation of the rightful representatives of the Bengwenyama community would be key in the opposing applications of Genorah and Bengwenyama Minerals – a body representing some commercial entities of the Bengwenyama Tribal Council – for the prospecting rights over the two farms.
Both parties have submitted section 104 applications in the wake of the ruling.
In a conversation with Miningmx following the January 13 announcement, Nkwe spokesperson David Tasker refused to specify the decision making body of the Bengwenyama which had thrown its weight behind Genorah’s application, save for saying Nkwe is “comfortable it has the support of the surface rights holders’.
Nkwe and Genorah have previously questioned the Bengwenyama’s claim to ownership over Eerstegeluk, claiming the farm belongs to the Roka Pasha community which supports Nkwe and Genorah.
Ian Shapiro of law firm Eversheds, who represented the Bengwenyama and Bengwenyama Minerals at the Constitutional Court, said he is acting on behalf of the Bengwenyama Tribal Council and would follow due procedure to eventually mine the area.
“The Constitutional Court accepted that the tribal council represented the community,’ he said. “Community matters need to be channelled through the tribal council and to date it has not yet had sight of (Genorah’s) application.’
