PERTH (miningweekly.com) − Trading in the shares of junior mining company Nkwe Platinum remains suspended on the ASX, because of “perceived uncertainty” regarding its South African assets.

The company said earlier this month that it would resume trading on January 17, after a voluntary suspension was instituted on December 9.

Nkwe requested the trading halt after the South African Constitutional Court stripped its black-economic empowerment partner, Genorah Resources, of prospecting rights on two farms, which form part of the Tubatse project.

The court set aside the prospecting rights on the Nooitverwacht and Eerste Geluk farms on the grounds that Genorah did not communicate properly with the Bengwenyama community.

Rival community Roka Phasha claims to have the rights to the Eerste Geluk farm.

But Nkwe said that the Constitutional Court’s decision would not affect the company’s ability to retain and develop its interest in the Tubatse projects, as the court did not direct the Department of Mineral Resources (DMR) to award the prospecting right to an alternative applicant.

The company also stated this month that the rival Roka Phasha and Bengenyama communities had made a joint application to the DMR for the rights of the two affected farms.

The platinum developer said Monday that the shares suspension was a “prudent” course of action to ensure that shareholder value was maintained and that shareholders were able to trade securities in a fully informed manner.

“It is the intention of Nkwe to remain suspended until a determination is made in the coming weeks, based on statutory requirements with regard to the section 104 applications to these farms.”

Nkwe has a 64% interest in the Tubatse project.

 

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