PERTH (miningweekly.com) – The share price of junior ASX-listed Globe Metals & Mining dropped more than 11% on Friday, after the company reported that its Malawian subsidiary was facing legal action.
Globe Metals and Mining (Africa) has been named as a defendant in a legal action started in the High Court of Malawi, by 243 members of the Kanyika community against Globe Africa and the Attorney General of Malawi.
The community members have accused Globe of carrying out exploration and mining activities on an area of the Kanyika project area without honouring its compensation obligations to the community, with the community members now seeking compensation and damages for these actions from both Globe Africa and the Malawi government.
Globe has denied receiving any court papers, as well as the allegations.
The company said that it was in dialogue with the government and the Attorney General in relation to this matter.
Globe shares were trading at a low of 1.6c a share on Friday, down from a high of 1.8c a share.