Whetstone listing on ZSE still on

Business Reporter
CANADIAN resource firm Whetstone Minerals has refuted reports that it has cancelled its planned listing on the Zimbabwe Stock Exchange saying the listing was on course and would be completed towards the end of next month.
Reports indicated that the firm had cancelled its plans to list on the ZSE over indigenisation and empowerment issues, but the firm poured cold water on this yesterday saying the Initial Public Offering on ZSE was scheduled for completion next month.
“This transaction is scheduled to close on or about March 21, as stated in a Press release issued over international wire services on February 22,” said Mr Allan Dollan, Whetstone Minerals’ executive chairman.
He said the transaction would raise US$5 million and of that amount US$4,5 million, with US$2 million set to be raised from local investors, would be used to further develop Whetstone Minerals gold mines in Zimbabwe.
Mr Dollan said the ZSE had already approved the IPO, which it fully supported and believed will help increase international foreign direct investment in the country.
Mr Dollan would, however, not provide a detailed account on how far the firm had gone in addressing alleged discrepancies in its listing prospectus, which the Government had reportedly questioned.
“Whetstone is in full compliance with the Indigenisation Act and has received legal opinion to this effect from its legal counsel, Atherstone and Cook,” said Mr Dollan.
If the company lists on the ZSE it would become the first resource firm to be quoted on the local bourse since 1953 and the first dual listing from Toronto Stock Exchange in the history of the country.
The listing would see locals remaining with 16 percent shareholding in the gold mining firm, which contends the listing would give local investors an opportunity to participate in the development of resources in their country.
“With the anticipated success of Whetstone’s exploration programmes in Matabeleland North many hundreds of additional jobs will be created in that region, along with improved economic activity,” said Whetstone.
Whetstone will become the first fully fungible counter, tradable on more than one stock market, dually listed Canadian-Zimbabwean company listed on ZSE, TSX and Frankfurt Stock Exchange.
The firm acquired more than 611 gold claims from Bembesi Gold Fields Group assets (Durban, Sunace and Charliesona) with 232 000 ounces of estimated gold resource.