Eastern Platinum Limited (TSX: ELR, JSE: EPS), revealed today that its South African subsidiary, Barplats Mines Proprietary Limited (Barplats), has been served with a summons from ABT Toda Proprietary Limited (ABT Toda). This summons is a result of an ongoing arbitration dispute between Barplats and Advanced Beneficiation Technologies (ABT), concerning the termination of a project framework agreement.
The Summons, filed with the High Court of South Africa, North West Division in Mahikeng, marks the latest development in the disagreement between Barplats and ABT. At the core of the dispute lies the termination of an agreement that pertained to the development and construction of a modular plant designed to process platinum group metals (PGMs) from tailings re-deposited from the retreatment project at the Zandfontein tailings dam located at the Crocodile River Mine.
The Agreement, which was terminated prior to the completion of several crucial milestones, included the establishment of a joint venture agreement between Barplats and ABT, financing agreements, and off-take agreements for the project. Regrettably, none of these agreements were finalized before the termination of the Agreement.
ABT Toda, acting as the intended nominee of ABT, filed the Summons against Barplats. Details regarding the content of the Summons and the specific claims made by ABT Toda have not been disclosed at this time.
In response to the Summons, Eastern Platinum Limited announced that it will seek legal advice and make a recommendation regarding the appropriate course of action. The company is firmly committed to resolving the dispute in a fair and transparent manner, ensuring the best interests of all stakeholders are taken into account.
Eastern Platinum Limited primarily operates in Canada and South Africa, engaging in the exploration, development, and mining of PGMs. The company holds a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE Limited.
Cautionary Statement Regarding Forward-Looking Information:
Eastern Platinum Limited issued a cautionary statement, highlighting that this announcement contains forward-looking statements that are subject to various risks, uncertainties, and assumptions. These statements include forecasts, estimates, expectations, and objectives for future operations, which may not materialize due to factors beyond the company’s control. Factors that could impact actual results include commodity prices, economic conditions, currency fluctuations, competition, regulations, legal proceedings, and operational risks in foreign countries.
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