JOHANNESBURG (miningweekly.com) – Junior miner Central Rand Gold South Africa (CRGSA) will oppose a court interdict brought against it by black economic-empowerment Puno Gold Investment, the company said on Wednesday.

CRGSA explained that Puno was seeking to interdict its South African subsidiary from proceeding with mining operations at its Consolidated Main Reef, Langlaagte, City Deep and Crown Mines tenements.

The decision was pending the final determination by arbitration award or court order of the interpretation of the provisions of the shareholders agreement entered into between Puno and Central Rand Gold Netherlands Antilles (CRGNV) in respect of CRGSA.

The shareholders agreement provided for the completion of, and timeframe within which, a bankable feasibility study was to be prepared in respect of the anticipated mining of the tenements.

CRCGA said that the interdict proceedings were scheduled to take place on October 13, or so soon thereafter.

“The company reasonably believes that it will be successful in opposing this application,” CRGSA said in a statement.

In February, CRGNV said it would exercise a call option to buy Puno’s 26% stake in CRGSA, after Puno failed to fulfil the funding obligations stipulated in the shareholders agreement.

Puno instituted an urgent application with the South Gauteng High Court in Johannesburg in April, to interdict CRGSA and CRGNV from proceeding with the exercise of the call option, pending final determination by arbitration, or a court order, of the volatility and enforceability of the funding call by CRGSA and the call option furnished by Puno in favour of CRGNV in respect of its shares in Central Rand Gold.

The dispute was then referred to an arbitration process, in the hopes of obtaining a final resolution more quickly.

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