SHADY UNDERTAKINGS BY OLD MANAGEMENT?Or a smoke screen by current management?
Eastern Platinum sues ex-CFO Lee over $441,000 payment
2017-10-20 10:54 ET - Street Wire
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by Mike Caswell
Eastern Platinum Ltd. has filed a lawsuit in the Supreme Court of British Columbia against its former chief financial officer, Horng Dih Lee, and its former management company over a $441,000 payment. The suit claims that Eastern Platinum paid the money the same day that shareholders elected a new board, and did so based on a fabricated document. Eastern Platinum is seeking the return of the money, as well as other damages.
The allegations are contained in a notice of claim filed at the Vancouver courthouse on Oct. 16, 2017. The defendants are Mr. Lee, who was the CFO from 2007 to 2016. Also named is Sterling West Management Ltd., a private entity that provides management services to public companies.
The problems, as described in the suit, arose from events that occurred on July 5, 2016. On that date, the company's shareholders elected a new slate of directors, including its present chairman, George Dorin. (The then-management slate, led by David Cohen, lost by a wide margin. Mr. Cohen received 12.5 million votes to 54.5 million for Mr. Dorin.)
Eastern Platinum says BEE shareholders sell interests
2017-11-08 01:55 ET - News Release
Mr. Rowland Wallenius reports
EASTPLATS ADVISED OF PURPORTED CHANGE IN OWNERSHIP OF INTERESTS IN BEE PARTNER COMPANIES
Eastern Platinum Ltd. has been advised by certain third party shareholders (the BEE shareholders) of Gubevu Consortium Investment Holdings Pty. Ltd. and Lion's Head Platinum Pty. Ltd. that they have purportedly relinquished their interests in those companies in varying amounts to either Serina Services AG or Ingwenya Inc. Gubevu is the Company's Black Economic Empowerment ("BEE") partner in Barplats Investment Limited and Lion's Head is a BEE compliant corporation in the Company's Mareesburg project. The Company has been advised that the BEE shareholders originally acquired these shares from Serina and Ingwenya, and these shares have purportedly now reverted to them. Neither the Company nor its subsidiaries were parties to these purported transactions and we have not been provided with direct confirmation of or further information regarding these transactions.
On June 30, 2016, two days following the announcement of the proposed sale of the Crocodile River Mine, former management purportedly caused the Company to enter into certain "Share Purchase Agreements" with Serina and Ingwenya. Those agreements contemplated payment by Eastplats of approximately US$13.4 million upon the change of control of the Company at the 2016 AGM and former management caused the funds to be paid. (see News Release of July 4, 2016 issued by the former management and the December 31, 2016 MD&A).
The Company has met and discussed the above issues with the Department of Mineral Resources in South Africa. As previously disclosed, South African mining regulations require certain levels of black economic empowerment in respect of mining rights. The Company is working to understand the nature and possible implications of the above transactions and, if necessary, to reorganize or remedy its BEE arrangements.