7th May 2025 15:44
(Alliance News) - Kazera Global PLC shares rose on Wednesday after a favourable ruling in arbitration proceedings against Hebei Xinjian Construction CC.
The stock was 12% higher at 1.99 pence in London on Wednesday afternoon.
The mining investment firm focused on early-stage assets was awarded around USD11.9 million plus costs.
Kazera said that the binding arbitration proceedings found that Namibian company Hebei had breached contractual obligations by failing to make a full and timely payment for Kazera's interest in African Tantalum (Pty) Ltd or Aftan.
Hebei is obligated to pay USD9.2 million plus USD1.6 million in interest incurred up to October 8, and 20% per annum interest from October 9 until the payment date, as well as full legal and arbitration costs.
The total amount accrued stands at USD11.9 million plus costs as of Tuesday.
Kazera previously announced in December 2022 that it had agreed to sell its entire stake in Aftan for around USD13 million. However, it said Hebei only paid USD4.1 million and failed to pay the remaining balance.
The deal included binding arbitration in case of a dispute, and Kazera said it "commenced proceedings in September 2024 after repeated attempts to resolve the matter amicably failed".
"We've always believed in the strength and fairness of our case, and this ruling confirms that," commented Chief Executive Officer Dennis Edmonds. "It is therefore a welcome outcome that protects shareholder interests and draws a line under a long-running issue.
"While the arbitration process hasn't held us back operationally, it has been an unhelpful distraction. We can now move forward with greater clarity and remain focused on unlocking value across the rest of the portfolio. We will now take the necessary steps to recover the full amount we are owed."
By Emma Curzon, Alliance News reporter
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