Kansai Mining sued by former JV partner 2009-06-11 14:38 ET - Street Wire by Mike Caswell Kansai Mining Corp., an inactive gold junior trading on the NEX, is facing a lawsuit in the Supreme Court of British Columbia from its former joint venture partner, Anglo-African Minerals PLC. According to the suit, Kansai repudiated the companies' joint venture agreement three months after accepting an initial $46,000 payment under the deal. (All figures are in U.S. dollars.) Anglo-African is seeking repayment of that amount plus damages. Anglo-African set out its allegations in a brief statement of claim dated June 4, 2009. In it, the company claims that it signed an agreement with Kansai on Dec. 19, 2008, to acquire a 75-per-cent interest in Mid Migori Mining Company Ltd., a private company that owns the Migori gold project in Kenya. Under the agreement, Kansai agreed to transfer the interest in return for a $40,000 payment upon signing, plus $610,000 as money from financings became available. Anglo-African says it also agreed to issue five million shares to Kansai. According to the claim, Anglo-African paid $46,000 to Kansai the same day it signed the agreement. Three months later, Kansai refused to transfer the shares of Mid Migori, the suit alleges. Kansai also issued a news release on March 12, 2009, wrongly announcing that the joint venture had been terminated, Anglo-African claims. "The press release was issued in breach of the JV Agreement, without the permission of [Anglo-African] and despite demands by [Anglo-African] that it not be issued," the suit reads. Anglo-African says the news release harmed its efforts to raise money. The suit states that Anglo-African wrote several letters, which failed to resolve the dispute. Anglo-African claims it requested in writing on March 24, 2009, and March 31, 2009, that Kansai transfer the shares in Mid Migori. Kansai refused, and Anglo-African wrote a further letter stating that it would treat the joint venture as repudiated by April 2, 2009, if Kansai did not transfer the shares, the suit alleges. "[Anglo-African] accepted Kansai's repudiation and the JV Agreement came to an end on April 2, 2009, ending both parties' obligations under it and preserving AAM's right to sue for damages from that date," the suit reads. Anglo-African says that Kansai has been unjustly enriched by the $46,000 it paid. It also alleges that it suffered loss of profits and loss of opportunity because of Kansai's breach of the agreement. The company is seeking damages, restitution, interest and costs. Anglo-African is represented by Alan Cofman of Borden Ladner Gervais LLP. Kansai has not responded to the suit, and Anglo-African has not proven its allegations in court. |
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didnt JETHRO TULL write a song that went lets bungle in the jungle ,thats alright with me.welcome to the real world of working on or with foreign continents espically when youre a junior company,good luck to all. Posted by
kakunda
@ 2009-06-12 17:12
Is Anglo-African Minerals PLC a Raymond Dabney deal by any chance? Posted by
XRAYMEDIA
@ 2009-06-12 19:27
why would anyone go after a company that has no money dumb stupid that is why they both are zero companies Posted by
laughing fool
@ 2009-06-17 13:03
looks like Anglo had the cash but kansai wanted to reneg -crazy! Posted by
kneedeep
@ 2009-06-22 18:19
seems like Kansai are at it again - Red Rock Resources plc have announced in London that they are to buy 60% of Migori for $725,000 and get to a bfs. I wonder whether the AIM people know of the litigation by Anglo-African... Posted by
kneedeep
@ 2009-08-17 13:07
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