Revised Africa Update
On September 23, 2008, the Receiver filed an urgent application in the High Court of
South Africa (Pretoria), seeking, among other things, (i) recognition of the New York Court's
Order appointing Timothy J. Coleman as the Receiver, and (ii) an order compelling the respondents
to provide the Receiver with access to the books and records of Pure Africa Holdings (Pty) Ltd. ("PAH").
The Receiver's counsel sought the High Court to hear the matter on an urgent basis on September 30, 2008.
On September 30, 2008, the Receiver's counsel appeared in the High Court in Pretoria.
Michael van der Merwe, Chief Executive Officer of Pure Africa Minerals (Pty) Ltd. ("PAM"),
and other respondents filed an opposition to the Receiver's urgent application on the morning of the 30th.
The Judge, without dealing with the merits of the Receiver's application, denied the Receiver's request
for an expedited hearing during that week in light of the fact that the respondents had only filed their
answering affidavit that morning and that respondents were entitled to additional notice of the matter.
The Receiver has, through his attorney of record in South Africa, applied to the Deputy Judge President
for a new date for the hearing on the basis that the matter remains urgent and cannot be dealt with in the
normal course. (A hearing in the normal course would take place in or around April of 2009.)
Since September 30th, the Receiver's attorney of record has requested that the respondents supplement
their opposing papers but to date they have refused and/or failed to do so. We presently are awaiting
the Deputy Judge President's decision on an expedited date for the hearing.
Also, on September 30, 2008, the newly appointed directors of PAH held a directors meeting to introduce
themselves as directors of the company, and to demand access to the books and records of PAH, to which
they are entitled under South African law. The previously scheduled PAM board of directors meeting was
cancelled due to PAM's liquidation proceedings. On October 3, 2008, PAH provided a few documents to the
directors. The directors have reviewed these materials and have requested additional documents from the company.
On September 16, 2008, without notice to the Receiver, PAM was placed into involuntary liquidation in South
Africa by Storm Technologies (Pty) Ltd., an alleged creditor company associated with PAM and PAH.
On October 2, 2008, the Master of the High Court appointed the Receiver's nominated liquidator, Norman Klein,
as one of the joint liquidators of PAM. Mr. Klein is considered one of the leading persons in this field in
South Africa. We await further information from the Master of the High Court regarding the first meeting of
the creditors of PAM. The initial meeting of creditors has not yet been scheduled. The Receiver is presently
preparing claims against PAM and its related entities for submission and acceptance at the first creditors'
meeting.