Eastplats to Seek Order to Strike Application in South Africa Related to 2007 Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 20, 2017) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Eastern Platinum Ltd. (TSX:ELR)(JSE:EPS) ("Eastplats" or the "Company") announces that it has taken steps to oppose and have struck as frivolous and vexatious, a claim recently filed in South Africa made by Alpha Global Capital Inc. ("Alpha Global").
As previously disclosed in 2007 and thereafter, in connection with the Company's acquisition of an additional 5% interest in Barplats Investments Limited (which indirectly holds the Crocodile River Mine in South Africa), Eastplats International Inc. ("EII"), a wholly-owned subsidiary of the Company, entered into an agreement under which Alpha Global was to receive ZAR 30,797,464 (Cdn.$3,220,243 translated at a current exchange rate of Cdn.$1.00:ZAR9.86) upon the closing of a "Fundamental Transaction". Alpha Global is now seeking payment of and other relief in connection with that agreement.
The Company is of the view that no amount is currently owing to Alpha Global and as a result it is not entitled to any remedy in connection with its alleged claim. The Company has taken steps to oppose the claim and to have it struck as frivolous and vexatious and is seeking costs against Alpha Global.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions.
In particular, this press release contains forward-looking statements pertaining to: the lawsuit; the Company's belief with respect to the merits of the lawsuit; and the Company's intention to defend against the lawsuit and potential remedies. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, commodity prices, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contact
Eastern Platinum Ltd.
Diana Hu
President and Chief Executive Officer
(604) 800-8200
dhu@eastplats.com
