TSX- and JSE-listed Eastern Platinum (Eastplats) has welcomed the British Columbia Court of Appeal’s decision to uphold the dismissal of an appeal of a petition filed by a shareholder seeking leave to start derivative action against certain of the company’s current and former directors.
This relates to transactions between Eastplats and Union Goal Offshore Solutions.
Eastplats CEO Diana Hu says the company can now renew its efforts to focus on its current operations and other opportunities in South Africa.
The shareholder's petition to start a directive action against current and former directors of Eastplats was initially dismissed last year, following which the shareholder decided to appeal the court’s decision.
The derivative action, which is usually brought by a shareholder on behalf of a company against directors, was sought by 2538520 Ontario Limited.
The derivative action relates to transactions between Eastplats and Union 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 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 too.
Operations at the retreatment project began in December 2018 and have continued to ramp up over time.