CALGARY, April 1 /CNW/ - (TSX Venture: WMI) - Whetstone Minerals Ltd. ("Whetstone") announces that, further to its press releases dated November 2, 2010,
December 1, 2010, December 31, 2010, January 21, 2011 and February 22,
2011, Whetstone anticipates that, subject to the receipt of all
necessary regulatory approvals (including TSXV approval), it will
complete the previously announced acquisition (the "Acquisition") of the outstanding share of DGL Investments Number Four Mauritius
from Duration Gold Limited in consideration for the issuance of
45,000,000 common shares of Whetstone to Duration Gold Limited and the
private placement financing of 50,000,000 common shares of Whetstone at
an issue price of U.S.$0.10 per share (the "Private Placement") on or before April 8, 2011.
The Government of Zimbabwe gazetted the Indigenisation and Economic
Empowerment Act in 2007. This Act made provision for the indigenisation
of up to 51% of all foreign owned businesses operating in Zimbabwe.
Regulations in support of the Act were subsequently published in
February 2010 in preparation for the implementation of the provisions
of the Act.
The Minister of Youth, Indigenisation and Economic Empowerment published
on Monday, March 28, 2011, a statutory instrument in the Zimbabwean
Government Gazette, General Notice 114 of 2011 (the "Notice"), setting
out the requirements for the implementation of the provisions of the
Indigenisation and Economic Empowerment Act and its supporting
regulations as they pertain to the mining sector.
The Notice defines the minimum indigenisation and empowerment quota as
"a controlling interest or 51% of the shares or interests which in
terms of the Act is required to be held by indigenous Zimbabweans in
the non-indigenous mining business concerned".
The Notice requires that disposals of the required indigenisation
interests must be to defined "designated entities", which include the
National Indigenisation and Economic Empowerment Fund, the Zimbabwe
Mining Development Corporation or any company incorporated by that
entity, a statutory sovereign wealth fund that may yet be created, or
an employee share ownership scheme or trust.
The Notice states that "the value of the shares or other interests
required to be disposed of to a designated entity … shall be calculated
on a basis of valuation agreed to between the Minister and the
non-indigenous mining business concerned, which shall take into account
the State's sovereign ownership of the mineral or minerals exploited or
proposed to be exploited by the non-indigenous mining business
The Notice calls for all non-indigenous mining businesses to submit an
indigenisation implementation plan to the Minister within forty five
days of the date of the Notice, setting out the manner in which such
businesses plan to achieve the indigenisation quota. Such plan, once
approved by the Minister, must be implemented within six months of the
date of the Notice.
Allan Dolan, Chairman and Interim President of Whetstone commented
"Whetstone has factored in the impact of proposed Indigenisation into
its business plan and, through Duration Gold Limited, has submitted its
plan in compliance with the Indigenisation regulations and intends to
comply with the law as in force from time to time."
Further information will be made available as and when discussions have
In the interest of providing Whetstone shareholders and potential
investors with information regarding Whetstone including management's
assessment of the future plans and operations of Whetstone, certain
statements contained in this press release constitute forward-looking
statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. In
particular, this press release contains, without limitation,
forward-looking statements pertaining to the following: the anticipated
timing of the completion of the Acquisition and the Private Placement.
With respect to forward-looking statements contained in this press
release, Whetstone has made assumptions regarding, among other things:
its ability to obtain the necessary regulatory approvals to complete
the Acquisition and the Private Placement and its ability to raise the
necessary funds to complete the Private Placement. Although Whetstone
believes that the expectations reflected in the forward looking
statements contained in this press release, and the assumptions on
which such forward-looking statements are made, are reasonable, there
can be no assurance that such expectations will prove to be correct.
Readers are cautioned not to place undue reliance on forward-looking
statements included in this press release, as there can be no assurance
that the plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility that
the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause Whetstone's actual
performance and financial results in future periods to differ
materially from any estimates or projections of future performance or
results expressed or implied by such forward-looking statements. These
risks and uncertainties include, among other things, the following: the
failure of Whetstone to obtain the necessary regulatory approvals to
complete the Acquisition and the Private Placement; the failure of
Whetstone to raise the necessary funds to complete the Private
Placement; and general economic and political conditions in Canada,
Zimbabwe and abroad. Readers are cautioned that this list of risk
factors should not be construed as exhaustive. These risk factors are
discussed in Whetstone's information circular - proxy statement dated
November 2, 2010, as filed with Canadian securities regulatory
The forward-looking statements contained in this press release speak
only as of the date of this press release. Except as expressly required
by applicable securities laws, Whetstone does not undertake any
obligation to publicly update or revise any forward looking statements,
whether as a result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Whetstone Minerals Inc.
For further information:
please contact the Corporation or Charles Vivian of Pelham Bell Pottinger:
| Whetstone Minerals Ltd. |
Allan Dolan, Chairman and Interim President
and Chief Executive Officer
Phone: +44 (77) 9697 3008
| || Pelham Bell Pottinger |
Phone: +44 207 861 3126
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