| Thu 19 Aug 2010, 15:00 | | AQP - Aquarius Platinum Limited - Settlement of Moolman Mining litigation |
|
AQP
AQP
AQP - Aquarius Platinum Limited - Settlement of Moolman Mining litigation
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
SETTLEMENT OF MOOLMAN MINING LITIGATION
Aquarius Platinum Limited ("Aquarius" or the "Company") is pleased to announce
that the Arbitration and Litigation which Aquarius Platinum (South Africa)
(Proprietary) Limited ("AQPSA") instituted against Moolman Mining, a division
of Grinaker LTA Limited ("Moolman Mining") and the counter-claims made by
Moolman Mining against AQPSA in 2006 have been finally settled by agreement
between the parties. Pursuant to an agreement of settlement signed on 18 August
2010, AQPSA will pay to Moolman Mining, in full and final settlement of all
disputes and claims between AQPSA, Moolman Mining and the MD of Moolman Mining,
Mr Brian Wilmot, an amount of R86.8 million (approximately $12 million).
AQPSA rescinded its open-cast mining contract at Marikana with Moolman Mining in
December 2005 on the basis of an alleged misrepresentation by Moolman Mining in
respect of the foreign exchange component of the contract, also known as the
"Rise and Fall" clause. AQPSA then took steps to mitigate its original damages
at that point of approximately R1 billion, including the appointment of MCC as a
contractor in substitution for Moolman Mining at Marikana and concluding the
Marikana Pooling and Sharing Arrangement with Rustenburg Platinum Mines Limited,
pursuant to its duty under South African law to mitigate its damages. These
steps were successful in reducing the amount of its original damages claim of R1
billion to a negligible amount. AQPSA consequently withdrew its claim for these
damages, while retaining its claim for the rescission of its contract with
Moolman Mining.
Moolman Mining filed four counterclaims against AQPSA, together totalling R486.3
million (approximately $67 million), plus interest on all these counterclaims
calculated at 15.5% per annum from December 2005 until the date of final
payment. These claims were as follows:
- R219.9 million, being an amount arising from the application of the Rise
and Fall formula in the contract to the contract rate
- R33.6 million for standing time
- R68.6 million, alternatively R70.0 million, for damages ("Damages Claim")
- R164.2 million for work done by Moolman Mining in excavating the Marikana
open pit and not paid for by AQPSA
AQPSA opposed all the counterclaims on the basis that none of them were payable
to Moolman Mining and in any event if the Court upheld the rescission claim on
the basis of the misrepresentation by Moolman Mining, all the counterclaims
would be defeated. In June 2010, Moolman Mining withdrew the Damages Claim.
The settlement amount represents a payment for work actually done by Moolman
Mining (based on a re-measurement and re-audit of the Marikana open pit) which
work was not previously paid for by AQPSA, plus interest since December 2005 and
certain legal costs, and ignores the remainder of Moolman Mining counterclaims.
For further information please contact:
In the United Kingdom
Gavin Mackay
+44 7909 547 042
In Australia: In South Africa:
Willi Boehm Stuart Murray
Aquarius Platinum Corporate Services +27 (0) 11 656 1140
+61 8 9367 5211
19 August 2010
Sponsor in South Africa
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/08/2010 15:00:01 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.
