TORONTO and JOHANNESBURG, South Africa, June 18 /CNW/ - BRC DiamondCore
Ltd. (the "Company") (TSX - BCD; JSE - BCD) announces that a subsidiary
company, Samadi Resources SA (Proprietary) Limited ("Samadi"), has launched an
application in the Johannesburg High Court for an order declaring the
agreement with its former Black Economic Empowerment ("BEE") partner, Sefalana
Mineral Resources (Proprietary) Limited ("Sefalana"), to be void.
"Company legal counsel has advised that the application, if successful,
will finally dispose of any future claims that Sefalana believes that it has
against Samadi and will allow BRC DiamondCore to finalise an agreement with an
alternative BEE partner, in compliance with South African legislation," said
Company Chief Executive Officer Theo Botoulas.
During September 2006, Samadi and Sefalana concluded an agreement in
terms of which Sefalana became Samadi's BEE partner. This agreement was
subject to the fulfilment of certain conditions precedent. Sefalana failed to
fulfil five of the six conditions precedent in the agreement, as a result of
which the agreement lapsed. The shares issued to Sefalana were recovered and
cancelled pursuant to a deemed offer clause in the agreement.
"Sefalana has responded by repeatedly making threats in the media to
litigate against BRC DiamondCore; no action has been forthcoming from
Sefalana, but we believe that these public threats have adversely affected
investor sentiment towards the Company, and created an incorrect perception of
the Company's commitment to BEE, as required by South African legislation,"
Mr. Botoulas said.
"Several efforts by the Company, management consultants and other
stakeholders to resolve the matter amicably have proved unsuccessful, and we
believe that Samadi's approach to the High Court is the only recourse left to
dispose of the ongoing dispute with Sefalana and deliver a degree of certainty
For further information:
For further information: please visit our website,
www.brc-diamondcore.com, or contact: In Toronto: Martin D. Jones, Vice
President, Corporate Development, at (416) 366-2221 or 1-800-714-7938; In
Johannesburg: James Duncan, Russell & Associates, at 27 11 880-3924