Bauba Platinum back on track

[miningmx.com] — BAUBA Platinum shares jumped 25% on the Johannesburg Stock Exchange on Tuesday, following the resumption of trading after settlement of the dispute with the vendors of its platinum prospecting rights.

According to Dennis Tucker, CEO of Qinisele Resources which played a key role in the creation of Bauba from the former Absolute Holdings, “the funding is now in place to complete the initial drilling that will allow us to establish some inferred resources.

“Following that we will be looking at other methods of adding value to the business.’

Bauba shares were voluntarily suspended on the JSE on February 8, after management had been unable to resolve funding issues with the vendors – Ndarama Mineral Resources and Bauba A Hlabirwa Mining Investments.

Former CEO Pine Pienaar had resigned immediately ahead of the trading suspension. He has now been replaced by Grant Pitt as acting CEO.

Bauba also announced that former Mpumalanga premier Matthews Phosa will be reappointed as a director on fulfilment of the conditions precedent to the latest agreement, which have to be met by March 25.

Phosa resigned from the board with immediate effect on December 9 for unspecified reasons. Sources close to the dispute said he continued to be involved in the negotiations on the side of the vendors.

The sources said the issue at the core of the dispute concerned the amount of money raised by Bauba for its listing on the JSE in September last year.

Bauba had initially stated it was looking to raise up to R150m to carry out drilling exploration work on its three main projects near Steelpoort in Limpopo Province, and also said the minimum amount needed was R60m.

That was dropped to R15m because of adverse financial market conditions in the run-up to the listing.

Pienaar said the decision to lower the minimal capital amount had been agreed at a general meeting of shareholders, and was taken as a strategic move to “get the deal done’.

But on December 15, Bauba voluntarily suspended its shares for the first time after the dispute with the vendors was made public.

Trading resumed on December 17, based on a “reinstatement agreement’ to be signed by February 4 which provided for the raising of another R7.5m.

In the event the agreement was not signed, reportedly because the vendors changed their minds at the last minute despite a “written and binding memorandum of understanding’.

Interviewed during the Mining Indaba in Cape Town, Tucker said: “I honestly believe this will be sorted out soon and then we can get on with it.

“I believe in Bauba because I believe the eastern limb of the Bushveld (geological complex) represents the future of SA’s platinum industry.’

The revised agreement announced on Tuesday shows the total amount of new funding being provided in terms of the reinstatement agreement has been raised to R11m. That will consist of R8m in cash and a R3m credit facility.

Bauba chairperson Jonathan Best said in a company release: “We are happy that all parties have been able to reach agreement and finalise the reinstatement agreement and, with this issue now behind us, the company can move ahead decisively to develop the Bauba project.”