11th Apr 2016 10:53
LONDON (Alliance News) - Central Rand Gold Ltd said Monday the High Court of South Africa has upheld an appeal brought by Central Rand Gold in relation to its ongoing dispute with Puno Gold Investment Proprietary Ltd.
Additionally, the high court has awarded a cost in favour of Central Rand Gold, the company said although it did not provide details of this award.
The dispute with Puno dates back to 2007 in relation to the allocation of intercompany loans to fund a budget and work programme carried out by Central Rand Gold South Africa. In 2009 Central Rand Gold Netherlands Antilles, the direct holding company of Central Rand Gold South Africa, exercised a call option giving Puno 90 days notice to acquire its entire interest in Central Rand Gold South Africa.
Puno then applied to the South Gauteng Division of the South African High Court to prevent this from proceeding, Central Rand Gold said. The parties agreed the matter would proceed to arbitration, but Puno failed to bring the matter before the Arbitration Foundation of South Africa, and CRGNV and CRGSA approached the court to requestion that an arbitrator be appointed.
Judge Lewis Goldblatt was appointed, but in 2010 Goldblatt found the matter could not proceed to arbitration as it was not brought to him by the claimant in the matter, Puno.
Puno then indication its intention to challenge the validity and constitutionality of the CRGSA shareholder's agreement, and Central Rand Gold says there continues to be no resolution in the dispute related to shareholder funding provisions of the CRGSA shareholder's agreement.
CRGNV and CRGSA filed an application with the High Court to discharge an interdict prohibiting the two companies from proceeding with the call option for Puno's entire shareholding. Puno then filed a notice of its intention to oppose this application.
The hearing in relation to this took place in December 2013, and the initial judgement in this hearing "failed to correctly consider the arguments proffered by the applicants", Central Rand Gold said, and as such the company was unsuccessful in its application.
In August 2015, the company appealed to the High Court, which was successful, and as such the matter will be referred back to the Supreme Court to fully consider the facts of the funding dispute with Puno.
"The company and its counsel remain confident of the strength of case and will keep shareholders fully informed as the matter progresses in the Supreme Court," Central Rand Gold said in a statement.
Shares in Central Rand Gold were down 3.7% at 3.25 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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