Eastplats to form special committee to review court petition on chrome deal

EASTERN Platinum (Eastplats) said it would form a special committee of three non-executive directors to review a petition filed in the Supreme Court of British Columbia relating to an agreement between the firm and Union Goal Offshore Solutions.

Eastplats said in March it had signed an agreement with Union Goal Offshore Solution, a chrome trading company, which would finance and supply to Eastplats subsidiary, Barplats, a processing circuit and technological know-how. Barplats would supply into the unit chrome-bearing tailings from its Zandfontein UG2 tailings facility.

It said today that the petition sought leave “… to commence a derivative action on behalf of the company against certain of its current and former directors in relation to the approval of the transactions (with) Union Goal Offshore Solutions Limited”.

Eastplats is involved in legal action of its own.

In June it lodged two civil claims in the British Columbia Supreme Court one of which was against “… certain former officers and directors of Eastplats”. The claims related to black economic empowerment (BEE) buyout transactions totalling about $13m.

Rowland Wallenius, CFO of Eastplats, said the civil claims were not against any of the BEE partners.

However, they do involve BEE companies which had shares in Eastplats. According to a previous Eastplats statement, former management sought the buyout of the BEE shares with the funds to be held in escrow.