- Nkwe has been made aware (given that neither Nkwe or Genorah are part of the process) that Anglo Platinum Limited has instigated an administrative process by applying to the DMR and through PAJA (Administrative Justice Act) by the Modikwa JV for a review on the 9 farms called the Modikwa deeps. This includes the 5 farms that comprise Nkwes Garatau and Tubatse Projects. - From Nkwes perspective the matter in respect of Nkwes 5 farms was settled in February 2008 (joint release 13 February 2008) with an agreement made between Anglo Platinum, African Rainbow Minerals, Genorah Resources, Nkwe Platinum and the DMR. Further from Nkwes perspective, the DMR and PAJA reviews instigated by Anglo Platinum and the Modikwa JV respectively have been utilised to reserve Anglos rights and potentially look at other remedies available from the DMR outside of challenging the original award of the 5 farms to Genorah given the settlement agreement reached in February 2008.
Yes, the issue is with DMR. But who knows where the appeals process will lead? Ofcourse it has real implications for NKP.
It would be an exreme scenario for PAJA to allow the rights to be cancelled and therefor Anglo and NKP/Genorah would need to reapply. Anglo missed the 180day deadline(but so did Beng). If Anglo can prove that they had a legally binding agreement(thats easy to prove) and that the agreement has now fallen down, their is an outside chance that PAJA will intervene.
Ofcourse, we all know (as per second paragraph) that the true motives arent to gain 100% ownership of the rights. It is merely a process to enforce NKP to deal with Anglo as per their agreement.
It seems complicated and borderline illegal IMO, that NKP can have a legally enforceable "agreement" with Anglo to negotiate a JV whilst having a legally enforceable "option" with Xstrata.
NKP Price at posting:
45.0¢ Sentiment: Sell Disclosure: Not Held
