Australia's Laverton still at row with Durban over S. Sumatra gold project

Australian god miner Laverton Gold NL said on Monday that the sale of its South Sumatran gold project to South African gold miner Durban Roodeport Deep (DRD) Limited had yet to be concluded, leaving the company's share trading at Australian Stock Exchange suspended.

Laverton and DRD entered into sales agreement in August 1999. A substantive portion of all of the debts of the Laverton group were being transferred to DRD and subject to Laverton in return for DRD's acquisition for Rawas gold project in South Sumatra. A residual debt would remain and it would be paid by DRD by issuing DRD's shares to creditors.

"Since this time the Directors have sought to finalize this transaction and secure the transfer of legal title to the Rawas project. However, thus far, DRD has resisted finalizing this transaction notwithstanding beneficial interest has passed to DRD in August 1999 together with the assets and liabilities associated with the Rawas Gold project," said Laverton's chairman J. Stratton in its report to Australia Stock Exchange.

Stratton said there had remained some uncertainty in the accounts of the Laverton, which had frustrated negotiation to settle the terms of conversion of the residual debt worth A$13 million in the company. (Alex)