Settlement agreement entered into by a wholly owned subsidiary
Unicorn Capital Partners Limited
Incorporated in the Republic of South Africa
(Registration number 1992/001973/06)
Share code: UCP ISIN: ZAE000244745
(“Unicorn” or “the Company”)
SETTLEMENT AGREEMENT ENTERED INTO BY A WHOLLY OWNED SUBSIDIARY
During the 2013 financial year, Megacube Mining Proprietary Limited) (“Megacube”), a wholly owned subsidiary of
Unicorn, instituted arbitration proceedings against Keaton Mining Proprietary Limited (“Keaton”) for the recovery of
funds previously owing to Megacube. In response, Keaton raised counterclaims based on alleged breaches of
contract by Megacube (“the Dispute”). During April 2016, the arbitrator dismissed Megacube's claim and found
Megacube to be liable to Keaton in respect of Keaton’s claims, including legal costs (“the April 2016 Award”).
During September 2019, clarification was obtained on the April 2016 Award, confirming that the total claim against
Megacube amounted to R116,5 million less the costs saved for not mining coal (“Quantification Arbitration”).
Following extensive engagements with Keaton representatives regarding the assessment of (i) the financial status of
Megacube, (ii) the prospects of Keaton being able to recover any awarded amounts from Megacube following the
Quantification Arbitration and iii) the continued legal costs of running the Dispute, Megacube and Keaton have
agreed to settle the Dispute and signed a Settlement Agreement on 14 May 2020 in terms of which both Keaton and
Megacube will withdraw their respective claims relating to the Dispute with each party to pay its own legal costs of
the Arbitration to date.
In the Company’s interim results as at 31 December 2019, the Company provided for a liability of R92 million relating
to the matter.
19 May 2020
Questco Corporate Advisory Proprietary Limited
Date: 19-05-2020 08:15:00
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