Johannesburg
– Junior miner Eastern Platinum says Hebei Zhongheng Tianda Platinum Company
has filed a civil claim against it.
In a
statement issued on Friday, the dual-listed miner says HZT has filed a claim
against it and several of its subsidiaries in the British Columbia Supreme
Court because of an alleged repudiation and breach of a share purchase
agreement.
This
agreement dates back to June 28 and was signed by Eastplats’ former management.
The law
suit seeks, among other relief, to force Eastplats to comply with the purchase
agreement.
Failing
which, HZT wants damages and costs.
“The company
intends to vigorously defend against the action and to refute many of the facts
and allegations made in the claim.
“Once the company
and its subsidiaries have been formally served with the claim they will respond
in due course.”
In June, Eastplats
said it had agreed to sell Crocodile River Mine and associated intercorporated
investments and loans for $50 million to the Chinese company.
Read also: Eastplats to buy out minority shareholders
AS part of
this deal, it would also buy out certain minority interests.
“The
company announces that it has reached agreement with certain holders of the
minority interests to buy their interests in all the company’s projects,
including but not limited to, the Crocodile River Mine for a total of $13
million,” it said.
In the 6
months to June, its loss widened to 29c a share from 5c a share.
BUSINESS REPORT