VANCOUVER, BC, March 18,
2024 /CNW/ - Eastern Platinum Limited (TSX: ELR)
(JSE: EPS) ("Eastplats" or the "Company") provides
this default announcement indicating Eastplats' potential delay in
filing its annual financial statements for the year ended
December 31, 2023 and related
management discussion and analysis and certifications
(collectively, the "Financial Statements"), the annual
information form for the fiscal year ended
December 31, 2023, and the CEO and CFO
certificates relating to the Financial Statements (the
"Required Filings") beyond the prescribed
filing deadlines.
The Company's potential delay in filing its Required Filings on
time is due to the following circumstances:
- On or about April 24, 2023, the
Company received unproven whistleblower allegations, including
allegations of undisclosed related party transactions pertaining to
the sale of chrome concentrate at discounted prices (the
"Allegations"). The board of directors of the Company (the
"Board") determined that it was in the best interests of the
Company to form a special committee (the "Committee")
consisting of two independent directors, George Graham Dorin and Xin (Alex) Guan, responsible for conducting an
investigation, review and analysis of the Allegations. On or about
December 11, 2023, the Committee
completed its investigation. With assistance from independent
counsel engaged and a third-party e-discovery specialist to assist
with the investigation, the Committee found the Allegations
advanced by the whistleblowers to be unsubstantiated. As a result,
the auditors did not accept an audit continuance engagement by the
Company until such investigation was complete and its conclusions
announced. Since December 2023, the
Company's management, together with its audit committee, has
cooperated with its auditors to complete the Required Filings as
soon as possible.
Considering the foregoing factors, the present circumstances
warrant the imposition of a management cease trade order
("Management CTO"), rather than a cease trade order
("CTO"), as contemplated under National Policy
12-203 – Cease Trade Order Orders for
Continuous Disclosure Defaults ("NP 12-203"). The Company
has applied for a Management CTO, however there is no assurance
that it will be granted.
Eastplats' Required Filings are required to be filed within two
months of the prescribed filing deadline of April 2, 2024. Eastplats' failure to file such
within this two-month period may result in the securities
commissions or regulators imposing an Issuer Cease Trade Order.
The Company proposes to remedy the default by diligently working
with its auditor to ensure the filing of its Required Filings as
soon as possible. Eastplats expects to be in a position to issue
and file the Required Filings by no later than April 30, 2024.
Eastplats therefore fully expects to file its Required Filings
prior to the end of the additional one month period as prescribed
by NP 12-203. Further, Eastplats has confirmed
that it intends to satisfy the provisions of the alternative
information guidelines described in
sections 9 and 10 of
NP 12-203 for so long as it remains in default
for failure to file the Required Filings. Should Eastplats
fail to file the appropriate Default Status Reports as prescribed
by NP 12-203, the securities commissions or
regulators may, as a result of such failure, impose an Issuer Cease
Trade Order.
The Company confirms that it is not subject to any insolvency
proceeding as of the date hereof. Eastplats also confirms that
there is no other material information concerning the affairs of
Eastplats that have not been generally disclosed as of the date
herein.
SOURCE Eastern Platinum Ltd.