Summary of independent review
As previously communicated, IGE's board has retained external legal advisors to make an independent report with respect to the company's ongoing acquisition of Ghana Gold. The board has now received the report from the legal advisor and it can be established that none of the board members has committed any crime in connection with the acquisition. However, the review indicates that there have been certain insufficiencies in the board's internal process in preparing elements of the acquisition, e.g. as regards the underlying material which constituted the basis for the board's decision to enter into the acquisition agreement and the fact that Terje Engstrom Lien has been board member of both IGE as well as Alluvia at the time of the agreement.
The prepayment of 50 MSEK, which was made e.g. for purposes of enabling IGE to initiate the production process, inter alia in DRC, has not served the commercial purpose which the board initially assessed it would have. The main reason for this delay is that KPMG resigned from its appointment in advance. For the same reason, the financing aiming to make IGE benefit from the value and the advantage of Ghana Gold has also been delayed.
The board is satisfied with the conclusion of the report that no crime has been committed but looks very seriously on the fact that there have been deficiencies with regard to the acquisition and has already started to review its internal routines and will take appropriate measures.
The board is looking forward to the EGM on 25 April 2013 and will thereafter continue the process of getting IGE into production as soon as possible.
For additional information, please contact:
Chairman of the Board, IGE Resources AB
Tel: +46 70 751 41 84
Terje Engstrøm Lien
Interim President and CEO, IGE Resources AB
Tel: + 47 926 15 167
IGE Resources AB (publ) is a Scandinavian asset management and development company within natural resources. IGE’s portfolio currently consists of several diamond exploration and production assets in Southern Africa and Nickel Mountain Resources AB (publ) owning Scandinavia’s largest nickel deposit. IGE is headquartered in Stockholm and its shares are listed on the Oslo Stock Exchange (ticker: IGE). Please refer to www.ige.se for more detailed information.