Raptor Resources Holdings,Inc. (fka RRHI)

[pitboss22]

US Trade Sanctions against the MMCZ present a major stumbling block RRHI / MBMI.

The Minerals Marketing Corporation of Zimbabwe {MMCZ) is on the US Treasury Dept, Office of Foreign Assets Control (OFAC), list of
Specially Designated Nationals (SDNs), entities subject to U.S. targeted sanctions related to Zimbabwe. U.S. nationals may not do business with these designated entities or with other entities they control. According to information published by OFAC.....

Prohibited transactions include, but are not limited to, exports (direct and indirect), imports (direct and indirect), trade brokering, financing and facilitation, as well as most financial transactions. Attempts to evade or avoid these sanctions are also prohibited. These prohibitions also extend to any person, organization or entity found to be owned, controlled or acting on behalf of any Zimbabwe entity included on the SDN list.

Foreign branches and representative offices of U.S. companies, as well as U.S. branches and representative offices of foreign companies are considered U.S. persons for purposes of these prohibitions.

PENALTIES - Criminal fines for violating the Executive Order or regulations to be issued pursuant to the Executive Order may range up to the greater of $500,000 or twice the pecuniary gain per violation for an organization, or up to the greater of $250,000 or twice the pecuniary gain per violation for an individual. Individuals may also be imprisoned for up to 10 years for a criminal violation. Knowingly making false statements or falsifying or concealing material facts when dealing with OFAC in connection with matters under its jurisdiction is a criminal offense. In addition, civil penalties of up to $11,000 per violation may be imposed administratively.

How does that effect RRHI / MBMI?

Except for precious metals and gemstones, all minerals are subject to the MMCZ Act. According to Zimbabwe law, Part VI of the MMCZ Act.....

PART VI

CONTROL OF SALE AND EXPORT OF MINERALS

42 Prohibition of sale or export of minerals otherwise than through Corporation

(1) Subject to this Act, no person other than the Corporation shall—

.. (a) sell any mineral, either inside or outside Zimbabwe, except—
.. .. (i) to the Corporation; or
.. .. (ii) in terms of a contract negotiated by the Corporation on behalf of the seller; or
.. .. (iii) when authorized to do so by the Corporation in terms of section fortythree and in accordance with the terms and conditions of such authority; or

.. (b) export any mineral from Zimbabwe except—
.. .. (i) in terms of a contract referred to in subparagraph (ii) of paragraph (a); or
.. .. (ii) when authorized to do so by the Corporation in terms of section fortythree and in accordance with the terms and conditions of such authority.


(2) Any person who sells or exports any mineral in contravention of subsection (1) shall be guilty of an offence and liable to—

.. (a) a fine not exceeding level twelve or double the value of the mineral within Zimbabwe at the date of the export or sale or double the price at which the mineral was sold, whichever is the greatest; or
[amended by Act 22 of 2001, with effect from the 10th September, 2002.]

.. (b) imprisonment for a period not exceeding one year;
[amended by Act 22 of 2001, with effect from the 10th September, 2002.]

or to both such fine and such imprisonment.

(3) Paragraph (b) of subsection (1) shall be construed as being additional to, and not as derogating from, the provisions of any other enactment which controls or prohibits the export of any mineral.

The sanctions are not retroactive so any contract entered prior to the addition of the MMCZ to the SDN list is still valid.