/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES./
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, March 4, 2020 /CNW/ - Eastern Platinum Limited
(the "Company") is aware that a shareholder, 2538520 Ontario
Limited ("2538520"), has issued a press release on
March 2, 2020 containing incorrect,
unproven, and speculative information concerning the Company, its
directors and others.
Derivative action
On August 28, 2019, Justice Smith of the Supreme Court of
British Columbia dismissed an
application by 2538520 on the basis that "2538520 has failed to
satisfy the good faith requirement in s. 233(1)(c) of the
BCA."
Appeal
As previously disclosed, 2538520 has filed an appeal from
Justice Smith's dismissal of their
application for leave to commence a derivative action, which is
scheduled for hearing in the Court of Appeal in April 2020.
The Company seeks dismissal of the appeal.
Further litigation
The Company has also recently become aware of a further claim
filed by 2538520 and its CEO, Rong Kai Hong, ("Plaintiffs")
regarding various allegations, including that the Company was
acting to oppress the Plaintiffs' rights among other claims.
Several of these claims are similar to the derivative action that
was dismissed by the Court and appear to primarily relate to
2538520's unsuccessful attempt to acquire control of the Company.
The Plaintiffs seek orders requiring a change to the Company
ownership, election of new Directors, several changes to senior
management and damages of US$50
million (or such greater amount as may be proven at trial)
from the Company, certain present and former Directors and
Officers, and separately seven other listed defendants. This
new lawsuit has not been served on the Company.
The Company intends to vigorously defend the lawsuit and to
refute the information and many of the allegations made in the
claim. If and when the Company and others have been formally served
with the claim they will respond in due course.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's most recent Management
Discussion and Analysis and Annual Information Form available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to the potential outcome of litigation
matters. These forward-looking statements are based on assumptions
made by and information currently available to the Company.
Although management considers these assumptions to be reasonable
based on information currently available to it, they may prove to
be incorrect. By their very nature, forward-looking
statements involve inherent risks and uncertainties and readers are
cautioned not to place undue reliance on these statements as a
number of factors could cause actual results to differ materially
from the beliefs, plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements.
These factors include, but are not limited to, unanticipated
problems that may arise in our production processes, commodity
prices, lower than expected grades and quantities of resources,
need for additional funding and availability of such additional
funding on acceptable terms, economic conditions, currency
fluctuations, competition and regulations, legal proceedings and
risks related to operations in foreign countries.
All forward-looking statements in this press release are
expressly qualified in their entirety by this cautionary statement,
the "Cautionary Statement on Forward-Looking Information"
section contained in the Company's most recent Management's
Discussion and Analysis available under the Company's profile on
www.sedar.com. The forward-looking statements in this press
release are made as of the date they are given and, except as
required by applicable securities laws, the Company disclaims any
intention or obligation, and does not undertake, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited