Wesizwe Platinum subsidiary Africa Wide Mineral Prospecting and Exploration has instituted legal action against TSX-listed Platinum Group Metals’ (PTM’s) wholly-owned South African subsidiary, as well as Royal Bafokeng Platinum (RBPlat), seeking to have the Maseve transaction declared unlawful.
Both PTM and RBPlat confirmed receipt of the summons on Thursday.
The Maseve transaction involves PTM’s sale of Maseve Investments, in which RBPlat and its subsidiary acquired the concentrator plant and related surface assets owned by Maseve for about $58-million, as well as 100% of the shares in and shareholder claims owing by Maseve for around $12-million.
The sale closed on April 26, 2018.
In a release on Thursday, PTM stated that “Africa Wide is seeking, at this very late date, to set aside or be paid increased value for, the closed transaction. Africa Wide held a 17.1% interest in Maseve prior to the Maseve transaction.”
PTM added that it had received legal advice, “to the effect that the Africa Wide action, as issued, is ill-conceived and is factually and legally defective”.
RBPlat noted in a statement that Africa Wide has argued that its shares were undervalued and that the Maseve transaction required the consent of Africa Wide in terms of a shareholders’ agreement.
RBPlat noted that having consulted with its legal advisers, it views Africa Wide’s claim as “weak” and adds that the company feels there are strong prospects of successfully defending this matter.
Mining Weekly Online was unable to reach Wesizwe for comment.