Perhaps this is whats driving up the stock???? Hope it helps
24th January 2008
Platinum Mining Corporation of India Plc
Corporate Update
On 8t August 2007, Platinum Mining Corporation of India PLC ("PMCI" or the "Company") announced that the Indian federal authorities had ordered a suspension of mining activities at the Boula mine, because they asserted that the mine lay in a designated wildlife zone.
PMCI's joint venture partner, Ferro Alloys Corporation Limited ("FACOR"), has disputed this and the matter is currently sub-judice with the Honourable Court of Anandpur in the state of Orissa. The court has granted the status-quo order and has permitted FACOR to continue mining operations without hindrance, and FACOR has continued to mine Chromite. FACOR is diligently pursuing the case and PMCI is engaged in an on-going dialogue with FACOR to understand and monitor the situation. Based on it's assessment of the position, PMCI is cautiously optimistic that a court decision in favour of FACOR may be reached . However, in the event the court rules against FACOR, there can be no assurance that PMCI will be able to derive value from the Boula mine, the Company's principal asset..
As a result of the ongoing court process, the sampling and exploration programme for platinum, which had been planned to commence following entering into the New Contracts (referred to below), has been deferred pending a successful resolution between FACOR and the Indian federal authorities..
The New Contracts refer to contracts intended to replace the Joint Operating Agreement ("JOA") between FACOR and PMCI's 70%-owned subsidiary Boula Platinum Mining Private Limited ("BPM") dated 5 February 2005. The Joint Venture Agreement between FACOR, PMCI and BPM is the primary agreement setting out the terms of the joint venture in relation to the Boula mine, and remains in full force and effect. Both parties have agreed to suspend negotiations, which were at an advanced stage, over the New Contracts until there has been a resolution of the dispute in relation to the wildlife zone.
The Board is resolved to looking for other investment opportunities in the platinum sector. PMCI announced on 19 October 2007 it had entered into an agreement, subject to completion of due diligence and necessary Government approvals, to acquire 20% of the share capital of Majormatic167 (Proprietary) Limited ("Majormatic") for US$1 million with the right to increase its interest to 51% by investing a further US $3.5m. Majormatic has been granted the prospecting rights over the Naboom Platinum Deposit in South Africa. Government approvals have now been received and the Company has completed its due diligence. The Company is now providing funding to Majormatic for its drilling campaign and once it has funded $1m, it will complete the acquisition of its 20% interest, provided the suspensive conditions of the agreement have been met. Should these conditions not be met, all PMCI's funding will be re-imbursed. The drilling campaign at Naboom has now commenced and is expected to be completed at the end of March 2008. Preliminary results will be made known as soon as available.
The Company's cash position remains robust with cash at hand in excess of £9m.
Further information will be provided to shareholders in due course.
Enquiries:
Charles Zorab
PMCI