The required statutory majority of creditors in those subsidiaries that were placed in provisional liquidation have voted in favour of Namibian’s formal schemes of arrangement under Section 311 of the South African Companies Act. The creditors’ acceptance of the offer is a significant step in obtaining the discharge of these subsidiaries from provisional liquidation. The schemes are now subject to sanction by the South African Court. It is anticipated that the application will be made to court by the end of July.
New director and executive appointments
Following the company’s annual general meeting held on June 29, 2001, the company is pleased to announce several board and executive appointments. Arye Barboy, Frank Giustra, Jay Kellerman, Eli Nefussy and Neil Woodyer have been appointed to the company’s board of directors. Mr. Barboy is currently director of international investment for the Leviev Group. Mr. Giustra is the founder and chairman of Lions Gate Entertainment, and was formerly the chairman and chief executive officer of Yorkton Securities Inc. Mr. Kellerman is a partner with law firm Stikeman Elliott. Mr. Woodyer is managing director of Endeavour Financial.
As well as his board appointment, Mr. Nefussy has been appointed chief financial officer of the company. Since last year, Mr. Nefussy has been the general manager of ILD Hotels in Israel. Between 1986 and 2000, he was the chief financial officer of the Hachsharat Hayishuv Hotel Group. His experience includes working with companies listed on the Tel-Aviv Stock Exchange and the New York Stock Exchange. He is a chartered accountant, and holds a BA in economics and accountancy from Tel Aviv University.
Alastair Holberton, Andrew Buxton, Carlo Civelli and Loine Geingos were re-elected as directors. Howard Beck and Charles Purdy did not stand for re-election. Namco’s board now consists of nine directors.
Mr. Holberton was reappointed chairman and CEO of the company. Peter Looijen was appointed chief operating officer with responsibility for mining and exploration activities.
Operations progress
MV Ya Toivo has resumed limited mining operations in Namibia. The buildup to full production capacity has been slower than expected due to the protracted nature of the provisional liquidation process, delay in finalizing repayment arrangements with suppliers, some of which are creditors, and technical impediments confining operations to marginal areas with sediment depths of less than three metres. Reflecting these impediments and substantial periods out of operation, production for the second quarter was 13,755 carats. The technical issues are being addressed with replacement parts scheduled for installation during the current quarter. The impacts of provisional liquidation on restarting the operation have been significant. The company believes that these second quarter production figures should not be extrapolated for the entire year and that production levels will improve in the second half.
The new drilling system on board MV Zacharias resumed sampling this month. Previously planned works which were delayed as a result of provisional liquidation have now been completed. To date, 10 commissioning samples of 2.5 square metres have been taken in sediments up to seven metres.
Maintenance on board MV Namibian Gem started in June and it is expected that the vessel will resume operation this quarter.
Repairs to the damaged NamSSol mining system are continuing and the company is on track for resuming production in the fourth quarter. As previously advised, the all-risks policy claim has been accepted and the company continues discussions with underwriters of the business interruption policy.
Other developments
Last month the company filed a prospectus required to complete the $12-million (U.S.) private placement within the designated time period, avoiding the possible issuance of further shares and further dilution for shareholders.
Nasdaq and the Toronto Stock Exchange are continuing their review of the company’s eligibility for trading. The TSE has scheduled a review meeting with the company on Oct. 4, 2001, and Nasdaq has not yet advised on the likely timing of lifting the halt on trading.
“While we do not underestimate the challenges ahead, we are making solid progress towards completing the discharge of companies from provisional liquidation, building mining operations to operate at full efficiency and improve our mine planning with results obtained from the new exploration equipment,” said Namco’s chief executive officer, Mr. Holberton.
“I am delighted to welcome the management experience, financial acumen and strategic thinking of our new board members,” he said.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
