suspension from official quotation, page-5

From the very limited information that we know about this legal claim, a couple of questions come to mind (and they may, or may not, be pertinent).

Firstly, did the fund that apparently advanced the previous owners a some of $25 million for project exploration and development, have a legally binding agreement that stipulated should the project be sold then they would be eligible to have their money refunded.

If so, was it written into the legal documents that the funds would be refunded by the previous owners, or that the new owners (that is, SRR) would assume this debt as part of the sale and purchase and due diligence negotiations.

Was SRR made aware of all these facts during the sale and purchase negotiations, and if not, does SRR actually have a case against the previous owners.

Might the court rule that SRR is liable for the previous owners $25 million dollar debt, but that SRR also does have a case, and should recover this money from the previous owners. It all gets very messy. I wish we knew more details.

This should have all been made legally water-tight during due diligence.

Perhaps the previous owners knew there was a $25 million debt hanging over their head, and they did not want to pay it, so they thought they could pass it on to SRR.

Perhaps SRR should have gone to the claiming Fund, during due diligence period, and had them sign off that SRR would not be liable for the past owner's debt, before SRR actually agreed to purchase the project.

Either way, until we get an update, this is all supposition.

Sometimes these African legal disputes can take a lot of time to sort out, NKP was suspended for over 3 months.

Either way, the directors of SRR now have a duty to shareholders to inform them of what is happening, and what the details are of the legal issues involved. The owners of the company deserve to be kept informed.

I am sure the directors are doing all they can, on behalf of the shareholders, to resolve this as quickly as possible, and with the best result for SRR.

On another point, I see that Purity Mining have recently installed a new (apparently state-of-the-art) Manganese plant at their Otjozondu mine, which I believe is adjacent to SRR's project.

Namibian Economist article.

Purity - New Manganese plant in Otjozondu

Gw