| Fri 30 Jan 2009, 12:41 | | SNU - Sentula Mining Limited - Further Cautionary Announcement |
|
SNU
SNU
SNU - Sentula Mining Limited - Further Cautionary Announcement
Sentula Mining Limited
Incorporated in the Republic of South Africa
(Registration number 1992/001973/06)
Share code: SNU ISIN: ZAE000107223
("Sentula" or "the company" or "the group")
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 17 December 2008, shareholders are
advised that the forensic investigation, which centres around an undisclosed
bank account ("the undisclosed account") in the name of Scharrighuisen Open Cast
Mining (Proprietary) Limited ("SOC"), a subsidiary of Sentula, is still being
conducted. Notwithstanding that the emphasis of the investigation has shifted to
the recovery of misappropriated assets as opposed to ascertaining whether the
company was exposed to losses in excess of that already provided for in the 2008
financial year end, the outcome of the investigation may still have a material
impact on the company`s securities.
As detailed in the cautionary announcement dated 17 December 2008, there were
two principal areas of investigation that were not yet concluded:
- an amount of R24.1 million received into the undisclosed account from an
unidentified third party; and
- an amount of R68 million for which supporting documentation had not yet
been received in respect of installment sales agreements.
The board hereby reports that supporting documentation has now been received for
the full installment sales proceeds paid to the company. The reconciliation
process is now complete and confirms that the aforementioned R68 million was
correctly provided for in the results for the year ended 31 March 2008 as
released on SENS on 22 October 2008 and therefore there is no risk of further
liability in this area.
The source of the deposit of R24.1 million into the undisclosed account is still
unknown. The company, together with the forensic investigators, are taking legal
steps to identify this source. Based on the progress made in the forensic
investigation and the relatively small magnitude of this remaining deposit which
has not yet been directly linked to the individuals or entities that were
recipients of the proceeds from the undisclosed account, this would suggest that
set off against misappropriated funds will be the likely course of action and
therefore, the company does not believe that this amount represents a further
liability to the company. In the unlikely event that the R24.1 million is
unrelated to the recipients of the proceeds from the undisclosed account it may
represent a potential creditor/s and a further liability to the company.
However, since the closure of the undisclosed account on 5 March 2008, no claim
has been lodged against the company for this amount, which indicates that it is
likely that this deposit is linked to the recipients of proceeds from the
undisclosed account and, accordingly does not represent a further loss to the
company.
From the information available to date, the board believes that the full
financial impact of the accounting and transactional irregularities has been
provided for in the 2008 financial year-end accounts. As the forensic
investigation continues and further information becomes available, amounts which
have been previously written off will be reclassified to the correct line items
in the income statement.
Furthermore, as part of the recovery process, the company has instituted civil
and criminal actions against individuals and entities implicated by the forensic
investigations.
Although it is believed that the known impact has been fully provided for, as
detailed above, the investigation has not yet been finalised. Accordingly,
shareholders are advised to continue exercising caution when dealing in the
company`s securities until a further announcement is made in this regard.
Johannesburg
30 January 2009
Sponsor
Merchantec (Proprietary) Limited
Date: 30/01/2009 12:41:03 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
