https://www.miningweekly.com

Kasbah still struggling with BDO

2nd May 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – ASX-listed Kasbah Resources on Wednesday told shareholders that the company had failed to reach a commercial settlement with BDO Corporate Finance during a Court ordered mediation on April 30.

Kasbah in 2017 filed legal proceedings against BDO, seeking damages for a series of claims, including a breach of contract, negligence and misleading and deceptive conduct associated with BDO’s role as independent expert during the failed 2016 scheme of arrangement with Asian Mineral Resources.

Kasbah and Asian Minerals in August of 2016 entered into a scheme of arrangement under which Asian Minerals would acquire all the shares in Kasbah.

However, by December that year, Kasbah had identified a fundamental error in the valuation methodology applied in BDO’s independent expert review, which changed the company’s opinion of the scheme to “not fair, but reasonable”.

The agreement with Asian Minerals was eventually terminated, following resistance from that company’s shareholders.

Kasbah CEO Russell Clark said on Wednesday that no final agreement was reached with BDO during the court-ordered mediation, with the session adjourned to allow the parties to consider their cases.

The two companies had the opportunity to relist the mediation to continue the settlement discussions.

Meanwhile, Kasbah on Wednesday also reported the increase and extension of its existing loan facility with Pala Investments.

Pala will make available a further A$2-million loan to Kasbah, in addition to the existing A$1-million loan secured in 2016. The funds will be used to finalise a definitive feasibility study on the Achmmach tin project, as well as to meet development expenditure commitments and to cover ongoing working capital.

The loan maturity date has now been extended from the end of June 2018 to the end of December 2018, unless Kasbah completes an equity raise prior to the maturity date, at which point Pala could be requested to be prepaid in full or part.

Edited by Creamer Media Reporter

Comments

Latest News

The integration of Alamos' Island Gold mine (pictured) and Argonaut's Magino mine will create synergies of $515-million.
Alamos buys rival Argonaut
27th March 2024 By: Mariaan Webb

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.137 0.173s - 88pq - 2rq
Subscribe Now