WSL - Wescoal Holdings Limited - Legal dispute with BSM Mining
WESCOAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share code: WSL ISIN: ZAE000069639
("Wescoal" or the Company)
LEGAL DISPUTE WITH BSM MINING
Shareholders are referred to the article in the Business Day today regarding
BSM Mining`s application with the North Gauteng High Court on Thursday last
week for the liquidation of Wescoal Mining. This application relates to:
* Non payment of an invoice amounting to R84 146;
* Claims that the future rehabilitation liability at the Khanyisa Colliery is
R40 million and that Wescoal Mining will not be in a position to pay this.
Wescoal would like to provide shareholders with the following facts:
* BSM Mining supplied an incorrect and unregistered VAT number therefore the
VAT portion of any invoice should not have been paid. To date Wescoal has
been paying VAT to BSM Mining and a credit note has been requested. All
future payments will be withheld until the credit is exhausted and the
monies repatriated to South African Revenue Service.
* On a regular basis, Wescoal supply independently assessed rehabilitation
figures to the Department of Mineral Resources, based on the figures for
October 2011 the rehabilitation liability at the Khanyisa Colliery is R7,4
million and ongoing rehabilitation is taking place.
Any application for liquidation of Wescoal Mining is totally unfounded and
malicious and will be opposed. Shareholders will accordingly be made aware of
any future developments.
31 October 2011
Date: 31/10/2011 13:22:00 Supplied by www.sharenet.co.za
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