12th Jan 2017 09:56
LONDON (Alliance News) - ASA Resource Group PLC confirmed Thursday it has been served with a lawsuit over its Freda Rebecca gold mine in Zimbabwe.
ASA said it has been served with a claim in the High Court of Zimbabwe by Zindico Consortium.
The company said the claim appears to be based on a two-year old draft, unsigned agreement which was negotiated by Kalaa Mpinga, former chief executive of ASA when it was called Mwana Africa. ASA said the agreement appears to have not been submitted to or approved by the board of directors of the company.
ASA said the claim seeks implementation of the agreement in relation to Zimbabwean Indigenisation laws, which mandate majority local ownership of companies operating in the company.
ASA said it is currently seeking legal advice on the matter in Zimbabwe and will update the market in due course.
Shares in ASA Resource were down 14% at 1.58 pence Thursday morning.
By Adam Clark; [email protected]
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