JOHANNESBURG (miningweekly.com) – Aim-listed London Mining on Monday said it had reached a settlement agreement with joint venture (JV) partner Wits Basin Precious Minerals to dismiss the repayment of a $1-million loan to London Mining, as well as a counterclaim of $650-million by Wits Basin, all pertaining to the miners’ JV company China Global Mining Resources (CGMR).
Last year, Wits Basin stated that the loan was not yet due and instituted a counterclaim seeking damages for actions and breaches of fiduciary duty relating to the CGMR JV. However, London Mining slammed the lawsuit as being a tactic to avoid repayment.
Under the terms of the settlement arrangements, the parties had also decided to end their JV relationship and London Mining would transfer its interest in CGMR to Wits Basin.
London Mining said its stake in CGMR had been subject to various claims by local Chinese parties and that the termination of the JV with Wits Basin would allow it to focus on its core assets, save on legal costs and end litigation on an asset that it believed had no value.
London Mining acquired a 50% interest in CGMR in April 2009, with the remaining interest held by Wits Basin.