WESCOAL HOLDINGS LIMITED - FURTHER UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS AND LEGAL ACTION AGAINST WESCOALRelease Date: 05/10/2012 11:17:00 Code(s): WSL
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")
FURTHER UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS AND LEGAL
ACTION AGAINST WESCOAL
1. Transactions update
Shareholders are referred to the announcements released on SENS on 31 July
2012 and 3 September 2012 ("Previous Announcements") relating to the
Vlaklaagte Acquisition, the Vlaklaagte Disposal and the Elandspruit
Acquisition (?the Transactions?).
Capitalised terms used and not otherwise herein defined, shall have the
meaning ascribed thereto in the Previous Announcements.
Shareholders are advised that Wescoal Mining has provided written
confirmation to Xstrata on 27 September 2012, that it is satisfied with the
geological data in relation to the Elandspruit Mining Area. The associated
condition precedent to the Elandspruit Acquisition has accordingly been
Shareholders will be advised as soon as the remaining conditions precedent
to the Transactions have been met.
Shareholders are reminded that a circular containing full details of the
Transactions will be distributed to shareholders on or before 31 October
2. Legal action
Shareholders are advised that an application has been served on inter alia,
Proudafrique Trading 147 (Pty) Limited (?Proudafrique?), Minoscape (Pty)
Limited (?Minoscape?) Wescoal, Wescoal Exploration (Pty) Limited (?Wescoal
Exploration?), Wescoal Mining,and three other respondents by Johannes
Cornelius Van Der Westhuizen (?Van Der Westhuizen?), to:
1) set aside the shareholders agreement concluded between, Proudafrique
and Wescoal Exploration on 7 October 2007;
2) set aside the agreement concluded on 30 July 2012 between Wescoal
Exploration, Wescoal Mining and Proudafrique in terms whereof the
Vlaklaagte Prospecting Right was transferred from Wescoal Exploration
to Wescoal Mining; and
3) for the Vlaklaagte, Verblyden and Silverbank Rights to be transferred
back to Proudafrique.
Van der Westhuizen is a minority shareholder of Proudafrique. The
application is being opposed by Wescoal, Wescoal Exploration, Wescoal
Mining, Proudafrique and Minoscape (the majority shareholder in
Shareholders will be kept informed of the outcome of the legal action.
Corporate adviser & Sponsor to Wescoal Legal Advisers to
Exchange Sponsors KWA Attorneys
Legal Advisers to Xstrata
Baker & McKenzie
5 October 2012
Date: 05/10/2012 11:17:00 Supplied by www.sharenet.co.za
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