27th Jun 2014 14:45
LONDON (Alliance News) - African Minerals Ltd Friday said it will appeal after a court ruled it would have to pay bank Renaissance Capital USD35 million plus interest and costs after finding in favour of some of the Russian investment bank's claims in a litigation case against the minerals company.
Renaissance Capital filed a suit against African minerals in September 2013, claiming for financial advisers fees amounting to roughly USD133 million plus interest and costs. It said it was due the money for advising the company on previous fund raisings and transactions.
The case was heard by the Commercial Court in London in March and April this year.
The mineral exploration, development and mining company, with operations at the Tonkolili iron ore mine in Sierra Leone, said it strongly contested the claim. It said it has been granted leave to appeal the decision and believes that there are "reasonable prospects of success on appeal".
The company set aside GBP6 million as a potential award in its final accounts for 2012 and its unaudited preliminary full year results announcement for 2013. It had deferred the signing of its 2013 accounts awaiting the outcome of the court hearings, but will now publish them on Monday.
African Minerals shares were up 0.4% to 69.25 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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