JOHANNESBURG (miningweekly.com) – Precious metals explorer Platfields will soon announce changes to its executive management, telling shareholders on Friday that amendments to the company’s leadership had been driven by a depressed platinum environment, funding shortfalls and mining right validity concerns.
“The company has been through a very difficult period, with attempts to secure additional funding for the group being unsuccessful to date, owing to the difficult situation in the platinum industry. This has also impacted on potential acquisitions, which the company has been similarly unable to conclude thus far.
“[In addition], certain of the group’s prospecting rights have lapsed subsequent to the year end and petitions have been made to the Mineral Resources Minister for their validity and security of tenure,” the group said in a statement.
Platfields confirmed that it remained in negotiations with a third party for the potential acquisition of substantial mining assets, which, if successful, could result in a reverse listing, a change in control and in the board, as well as cash flow being injected into the group.
“Negotiations are progressing well with the potential funding to regularise the compliance requirements of the company, in conjunction with signed agreements for the acquisition of assets,” it stated.
The company announced in August last year that it had been compelled to put exploration activity largely on hold, citing its inability to attract investment interest, owing to the “turbulence” in the South African mining industry – particularly in the platinum sector.
Platfields shareholders were advised to continue to exercise caution when dealing in the company’s securities until a further announcement was made.