Zindico to serve summons in the UK

19 Nov, 2017 - 00:11 0 Views

The Sunday Mail

Tinashe Makichi
Zindico Consortium, which is claiming $20 million as compensation for breach of contract by diversified mining group Asa Resource Plc, has received an order from the High Court to proceed with the case by way of issuing summons.

Asa Resources and its Chinese shareholders, who have since been sacked from the company, are said to have rescinded a sale and purchase agreement for 26 percent of Freda Rebecca Gold Mine signed between Asa Resources and Zindico Consortium.

The Chinese shareholders, Yim Kwan and Yat Hoi Ning, are being accused of dishonesty after they allegedly engaged another indigenous partner over a separate empowerment deal despite the existence of an earlier agreement with Zindico, which had reached finality.

Asa Resources is the parent company of gold miner Freda Rebecca and Bindura Nickel Corporation, which is listed on the Zimbabwe Stock Exchange and Trojan Mine.

A lawyer representing Zindico Consortium, Governor Pendei, confirmed that the firm is now proceeding with the case by way of summons.

“We are now proceeding with the case by way of summons and I can confirm that we have obtained an order from the High Court to serve the summons in United Kingdom,” said Mr Pendei.

“This is just a change in procedure to pursue the case,” he said.

According to a lawyer who requested not to be named, the summons will mean the court will get to the root of the matter and parties involved will be required to come before the courts and testify orally.

The company was also recently sued by Suncraft Enterprises (Private) Limited, owned by businessman Kenneth Musanhi, a 15 percent shareholder in Freda Rebecca Gold Mine, for its intention to dispose of shares without giving regard to the minority shareholder’s pre-emptive rights.

Asa is accused by Suncraft Enterprises of making decisions on behalf of Freda Rebecca, which has its own board and shareholders.

The Sunday Mail Business is also informed that the case appeared to have faced hurdles when Asa Resources went under administration.

On July 30, 2017, the board appointed Mark Skelton and Trevor Birch of Duff and Phelps Ltd as joint administrators of the company.

Asa Resource is also currently suspended from trading on the London Stock Exchange’s junior market pending clarification of the company’s financial position.

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