Mercury Recycling Group says it is seeking shareholder approval to proceed with the acquisition of iron ore assets in the Northern Limb of the Bushveld Complex in South Africa.

However, the company has received a letter from lawyers acting for two individuals claiming to represent a tribe in South Africa. The tribe is purporting to have certain occupancy rights over land subject to the prospecting rights which the company is in the process of acquiring.

The company has obtained legal opinions that conclude that the said tribe does not have any valid entitlements which could impact on the enlarged Group's rights to prospect. Furthermore, the opinions consider that due process has been followed with respect to the granting of the prospecting rights under South African law.

Mr Giles Clarke non executive director commented that "The Board regards this letter as completely spurious but have been advised to make shareholders aware of it."

“We have received very robust expert legal advice from a South African law firm specialising in such matters and have been completely reassured that the letter is opportunistic and without any merit whatsoever. We remain fully committed to completing the acquisition and are excited about the prospects for the company following the acquisition."

Source - StockMarket Wire

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