[miningmx.com] — THE Constitutional Court has dealt another blow to Nkwe Platinum’s bid to regain some prospecting rights the group lost in an earlier ruling, by refusing Nkwe’s request to amend the factual basis on which the original ruling was made.
This came after Genorah Resources, Nkwe’s major shareholder, in December wrote to the court arguing the landmark ruling in which its prospecting rights for the farms Eerstegeluk and Nooitverwacht was set aside was based on the false assumption that the Bengwenyama-Ya-Baswati community was the legal owner of Eerstegeluk.
The rights were set aside after the court found that the Bengwenyama were not properly consulted.
“This court does not enter correspondence on judgments delivered by it and… your client may make an appropriate application to this court or any other court if so advised,’ read a letter issued by the registrar of the Constitutional Court dated February 1 2011, addressed to Genorah’s legal representatives Webber Wentzel.
Genorah’s letter to the court said the original ruling assumed that the Bengwenyama had lodged a successful land claim in respect of Eerstegeluk.
“It is so that it (the “Bengwenyama’ community) has lodged a land claim in respect of Eerstegeluk, but it is not correct that that claim has been “successful’. In fact, a decision on the claim has not yet been made,’ read the letter addressed to the court registrar dated December 14 2010.
“In the circumstances our clients humbly request the Constitutional Court to take whatever steps it deems appropriate to correct and/or revise any misapprehension that arises from these patent errors. and any finding consequent thereupon.’
In early January, Nkwe said it managed to win the backing of the Bengwenyama community in a new application submitted for prospecting rights on the two farms.
At the time, Ian Shapiro of the law firm Eversheds, who represented the Bengwenyama at the Constitutional Court, described the claims as “rubbish’, saying the community made a rights application immediately after the Constitutional Court made its ruling.
Rael Gootkin of Webber Wentzel said his client (Genorah) has yet to decide if it would pursue further legal avenues.
CASH SQUEEZE
Australian-listed Nkwe’s shares were last traded on December 7 following a voluntary suspension. In a recent statement, the group said its shares would remain untraded because of continued uncertainty over the group’s hold on key assets.
A quarterly operational report issued on Tuesday by the company showed its cash holdings amounted to A$3.8m at the end of December, adding it has received a further A$1.5m since then. Its cash holdings were A$6.7m on June 30 2010.
The firm does not own any income generating assets. It reported negative net operating cash flows of A$6.7m for the past six months.
Nkwe’s managing director Maredi Mphahlele did not respond to opportunities extended by Miningmx to comment on the group’s results and ongoing legal proceedings.
