"... I expressed disappointment that NKP had not kept its shareholders informed of legal proceedings that may impact projects. NKP responded by stating that it was not a party to the disputations. Furthermore NKP after seeking legal advice on associated risks to their farms/projects, obtained advice from the ASX regarding its obligations to comment on such matters. At the time of the original court case Nkwe only had an option on the Tubatse farms. This option was exercised after the case failed."
I can understand that there may have been no obligation for Nkwe to disclose when it was only a related party to an entity holding an option over these Tubatse farms, however, in my opinion both the appeal of the original court decision and the appeal to review the legislation on constitutional grounds in order to have the original mining rights approval reviewed are both material matters that should have rightfully been disclosed to the market.
Nkwe's lack of transparency on these issues together with the delay in tabling the Final BFS are causing investors to step wary with Nkwe at this time.
Stagman
NKP Price at posting:
52.0¢ Sentiment: None Disclosure: Held
