GSF Corporation fails in Zambian takeover

Perth-based seafood processing company GSF Corporation Ltd has announced that it has been unable to complete the acquisition of Londoloza Resources Corporation from the vendor Msasa Ltd.

The full announcement is pasted below:

GSF Corporation Ltd advises that it could not complete the acquisition of Londoloza Resources Corporation from the vendor Msasa Ltd as Resource Venture Capital Partners Pty Ltd, on the day of the last shareholders meeting, made a claim against Msasa in relation to part of the consideration payable by GSF to Msasa.

This claim had not been raised by RVCP with GSF prior to the shareholders meeting and was denied by the vendor.

This dispute has not been resolved and the vendor is not prepared to entertain any claim from RVCP.

As it appears unlikely to be resolved, GSF could not complete the acquisition.

Starvale Pty Ltd, which has a mandate with GSF to assist in evaluating and securing a resources project and who introduced the LRC acquisition have advised GSF that it will introduce a replacement resources project, under the terms of its mandate with GSF, for consideration by GSF.

Whilst GSF regrets not having the opportunity to progress its plans in Zambia through LRC, the board expects to advise shareholders of another valuable opportunity in the resources sector in the near term.

The vendor has agreed to refund to GSF half of all monies spent or advanced by GSF to LRC and its subsidiaries.

Mr Johan Engelbrecht will also resign from the GSF board.

The board acknowledges that Mr Engelbrecht disputes the RVCP claim which was only received by GSF after the recent shareholders meeting that ratified his appointment.

Mr Engelbrecht indicated his reluctance to proceed under these circumstances.

The Board thanks Mr Engelbrecht for his assistance in the proposed acquisition and wishes Mr Engelbrecht every success for the future.