VANCOUVER, Canada, July 18, 2016/ — AfroCan Resources Gold Ltd (AfroCan) has responded to recent media reports regarding its involvement in the Vantage Goldfields Ltd (Vantage) transaction with a single statement “AfroCan denies much of the positioning …. and notes that certain statements are mere spurious allegations. AfroCan has issued a formal communication to Vantage Goldfields Limited the Australian holding company of Lily Mine setting out its position.”
Through its attorneys in Sydney, AfroCan has now issued a letter to Vantage setting out the reasons why AfroCan believes Vantage has no grounds on which to bring action or any claim whatsoever against AfroCan and that AfroCan would vigorously resist any such claim if it were brought.
AfroCan is also compelled to place in the public domain certain facts in its possession which will provide the public, affected parties and AfroCan’s current and future stakeholders with a more balanced representation of the reasons for AfroCan’s withdrawal from the transaction:
11.29 June 2016 – faced with yet another about-turn in negotiations and with insufficient time to review Vantage’s proposals or properly address the challenges acknowledged by McChesney in his letter of 25 June 2017 AfroCan has no option but to withdraw from the transaction.
The intention of a media onslaught is to intimidate and leverage the risk of loss of reputation to coerce one party to perform to the will of the other. AfroCan shall not be coerced by the recent media reports nor will it succumb to threats of continued intimidation. AfroCan was forced to make a decision in the interests of its stakeholders. Some of the grounds upon which AfroCan based its decision are recorded above.
Brian Barrett AfroCan’s CEO commented “The about-turn by Vantage just two days after McChesney confirmed in a letter that the parties had commenced a joint process aimed at removing the obstacles to concluding the transaction, combined with the aftermath of Vantages’ subsequent malicious media attack on AfroCan, may have scuppered any chance of AfroCan getting its stakeholders and investors back to the table.”