| Mon 19 Apr 2010, 17:31 | | WEZ - Wesizwe Platinum Limited - Voluntary announcement on the protest march by |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Voluntary announcement on the protest march by
some members of the Bakubung-Ba-Ratheo Community on Monday 19 April, 2009
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the "Company" or "Wesizwe")
Voluntary announcement on the protest march by some members of the Bakubung-Ba-
Ratheo Community on Monday 19 April, 2009
Some members of the Bakubung-Ba-Ratheo Community marched on Wesizwe Platinum`s
offices in Melrose Arch, Johannesburg, at 15:00 today to present a Memorandum to
Company management. The march was organised to raise matters that have been in
contention for some time now with respect to the relationship between the
Company and the Community.
The historical context of this relationship is kernel to today`s event. Wesizwe
was established in 2003 and in December 2004 negotiated and signed a
participation agreement whereby the Community contributed certain mineral rights
to Wesizwe`s portfolio in return for a shareholding in the company. In addition
to this shareholding, it was agreed that the Community would be entitled to
appoint two directors to the Wesizwe Board. Wesizwe pioneered the concept of
the Community being represented at Board level rather than being a passive
partner at project level. This was premised by the principle of providing the
Community with a liquid balance sheet, underpinned by listed Wesizwe stock,
against which they could leverage some short-term value given the lengthy period
of gestation for a project the size of Wesizwe`s Frisch-Ledig Core Project.
In 2007 the Community appointed advisors, Musa Capital, to assist it in managing
these assets. This relationship led to the formation of a number of special
purpose vehicles. In 2008 some 44 million shares were transferred from the
ownership of the Community into one of these vehicles, a company called Newshelf
925 (Pty) Limited ("Newshelf"), a director of which is Antoine Johnson of Musa
Capital. Newshelf apparently raised loans of approximately R500 million by
collateralising these shares. There has been a lot of confusion around this
transaction and the utilisation of the money which was raised. The lack of
accountability and transparency in the deployment of these funds has led
directly to conflicts in the Community about the manner in which this
transaction was managed.
In the context of this growing conflict in the Community, the Premier of the
North West Province, Ms Maureen Modiselle, revoked the position of Mr Ezekiel
Monnakgotla as Acting Kgosi in February 2010 and, in April this year, appointed
Ms Margaret Monnakgotla as Acting Kgosi at the behest of the Royal Family who
are responsible for the appointment of the Kgosi. The Premier also appointed an
Administrator, Advocate M H Masilo, to manage the affairs of the Community. The
Acting Kgosi, supported by the Royal Family, has requested clarification from
the Traditional Council, which apparently sanctioned the transfer of the shares,
as well as Musa Capital, as to the details of the transactions and the use of
the money raised against the Community`s shareholding. As these requests were
not met, on Thursday, 15 April 2010, the Royal Family launched a court
application requesting the High Court to intervene in this matter.
While it is Wesizwe`s oft-stated intention not to get involved in internal
community affairs, the Company has unfortunately consistently been dragged into
this arena. In order to manage the impact of these internecine conflicts, the
Company has been party to the formation of a Steering Committee comprising the
Department of Mineral Resources, the North West Government, the Royal Family and
representatives of the Concerned Groups in the Community. The Company will work
through the Steering Committee structure to address any issues that may be
raised by the Community.
The Company reiterates its stance that it does not wish to involve itself in the
affairs of the Community, but to the extent that these affairs have impacted on
its business, the Company has no option but to take action where necessary and
with the express agreement of or instruction from the Steering Committee.
The Community`s Memorandum makes reference to corporate governance issues that
have been the subject of an Independent Review process that has been undertaken
by Deneys Reitz and Deloittes. This review cleared Mr Michael Solomon, CEO, and
former Acting-Chairman, Mr Robert Rainey, of any impropriety in the allegations
levelled at them in the latter part of 2009. Along with the reappointment of
other directors dismissed at the behest of the Community`s representative Mr
Disele Phologane at the Annual General Meeting on 12 August 2009, Mr Rainey and
Mr Solomon were restored to their positions at an Extraordinary General Meeting
held on 17 December, 2010. Since this meeting, the Board has been restructured
under the Chairmanship of Ms Dawn Mokhobo and is King III compliant. The
Executive Management has also been restructured with the appointment of Mr
Arthur Mashiatshidi as Executive Director, Finance, Mr Mlibo Mgudlwa as
Executive Director, Corporate Affairs and Mr Jacques de Wet as Chief Financial
Officer.
With this restructuring the Company is well positioned to get on with its
principal task of developing its core Frisch-Ledig Project. It is well known in
the market that Wesizwe is under cautionary in terms of certain negotiations
that are taking place with respect to potential funding and/or strategic
partnerships. This Community action, in the midst of these discussions, is
unfortunate in that it detracts from the desired objective of taking the Project
to full value extraction.
While the Wesizwe Board and its management is frustrated by the actions of
certain groupings in the Community who are attempting to destabilise the Company
at this critical juncture, it recognises the democratic right of its
stakeholders and shareholders to express their concerns on matters affecting the
Company and will respond in an appropriate manner to any such matters raised.
While the media focus on the Company seems to have been on these side-shows,
shareholders must not lose sight of the fact that the Company has a high quality
asset and management has done a great deal of ground work in preparing the
Company for the progression of its capital programme. "We believe we have the
support of all levels of Government in resolving the Community`s issues," said
Chairman, Dawn Mokhobo. "The Community has 12,56% of the Company`s issued share
capital and Newshelf holds 11,94%, however the Board looks after the interests
of all shareholders. In the event that these distractions and attacks on the
Company continue, Wesizwe will have no choice but to take the necessary legal
action to protect all shareholders` interests."
The Board of Wesizwe assures all shareholders that the Company is committed to
resolving all community issues so as to get back to the core business of mining
and creating wealth for all our shareholders, including the Bakabung Ba Ratheo
Community.
Melrose Arch
19 April 2010
Investment Bank and Sponsor: Investec Bank Limited
Date: 19/04/2010 17:31:03 Produced by the JSE SENS Department.
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