| Wed 18 Jun 2008, 11:00 | | BCD - BRC DiamondCore - BRC Diamondcore subsidiary seeks court order against |
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BCD
BCD
BCD - BRC DiamondCore - BRC Diamondcore subsidiary seeks court order against
Sefalana
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE SUBSIDIARY SEEKS COURT ORDER AGAINST SEFALANA
Toronto, Canada and Johannesburg, South Africa - June, 2008. BRC DiamondCore
Ltd. (the "Company") (TSX - BCD; JSE - BCD) announces that a subsidiary company,
Samadi Resources SA (Proprietary) Limited ("Samadi"), has launched an
application in the Johannesburg High Court for an order declaring the agreement
with its former Black Economic Empowerment ("BEE") partner, Sefalana Mineral
Resources (Proprietary) Limited ("Sefalana"), to be void.
"Company legal counsel has advised that the application, if successful, will
finally dispose of any future claims that Sefalana believes that it has against
Samadi and will allow BRC DiamondCore to finalise an agreement with an
alternative BEE partner, in compliance with South African legislation" said
Company Chief Executive Officer Theo Botoulas.
During September 2006, Samadi and Sefalana concluded an agreement in terms of
which Sefalana became Samadi`s BEE partner. This agreement was subject to the
fulfilment of certain conditions precedent. Sefalana failed to fulfil five of
the six conditions precedent in the agreement, as a result of which the
agreement lapsed. The shares issued to Sefalana were recovered and cancelled
pursuant to a deemed offer clause in the agreement.
"Sefalana has responded by repeatedly making threats in the media to litigate
against BRC DiamondCore; no action has been forthcoming from Sefalana, but we
believe that these public threats have adversely affected investor sentiment
towards the Company, and created an incorrect perception of the Company`s
commitment to BEE, as required by South African legislation" Mr. Botoulas said,
"Several efforts by the Company, management consultants and other stakeholders
to resolve the matter amicably have proved unsuccessful, and we believe that
Samadi`s approach to the High Court is the only recourse left to dispose of the
ongoing dispute with Sefalana and deliver a degree of certainty to
shareholders."
For further information, please visit our website, www.brc-diamondcore.com, or
contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development,
at (416) 366-2221 or 1-800-714-7938.
In Johannesburg: James Duncan, Russell & Associates, at 27 11 880-3924.
Johannesburg
18 June 2008
Sponsor
River Group
Date: 18/06/2008 11:00:01 Produced by the JSE SENS Department.
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