JSE-listed Eastern Platinum (Eastplats) has announced that the Supreme Court of Canada has declined to hear an appeal sought by a shareholder, which sought leave to start derivative action against certain of the company’s current and former directors.

The latest shareholder appeal follows the British Columbia Court of Appeal in November last year deciding to uphold a dismissal of an appeal of a petition filed by the shareholder, on behalf of a company called 2538520 Ontario Limited.

The derivative action, which is usually brought by a shareholder on behalf of a company against directors, was sought by 2538520 Ontario Limited (253).

The derivative action relates to transactions between Eastplats and Union Goal Offshore Solutions in 2018.

The agreement between the companies provided for the construction, mining and processing of a tailings resource and the subsequent offtake of chrome concentrate, from the Barplats Zandfontein upper group two tailings facility.

The facility is located at Eastplats’ Crocodile River mine, in South Africa.

Under the terms of the agreement, Union financed and supplied to Barplats the chrome processing circuit, related technology and know-how, while Barplats developed the retreatment project and is now mining and operating it.

Operations at the retreatment project began in December 2018 and have continued to ramp up over time.

Eastplats has advised that it will be seeking recovery from 253 of the costs incurred in responding to its unsuccessful petition and appeals.

“We are pleased with the further support this latest decision adds to our decision to proceed with our retreatment project and the agreements with Union Goal.

“We look forward to putting this unproductive litigation behind us and focusing our time and resources on our current operations and other opportunities in South Africa,” comments Eastplats CEO Diana Hu.