Natural resource development company Red Rock Resources says in an asset review and current developments update to shareholders that arbitration is continuing in the Democratic Republic of Congo (DRC), with the outcome unknown.
“As many will know, we recently returned from a trip to the DRC of over six weeks, the primary purpose of which was to participate in arbitration proceedings in Kinshasa where we are pursuing claims to our share of the sale proceeds of the key assets of a joint venture, which were disposed of without our knowledge,” chairperson Andrew Bell says.
He notes that $15-million of these proceeds are held by the buyer of those assets pending the result of the arbitration.
“In the light of shareholder speculation, we wish to set out to the best of our understanding the current situation.
“After several hearings, which clarified the factual background, the arbitrators urged us and the other party to negotiate between ourselves before the arbitration concluded to arrive at, if possible, an agreed outcome,” Bell explains.
Although the parties agreed to an outcome, “subsequently, it appeared that the representative and negotiator of the other party had either lacked authority or had changed his mind, and the negotiation ended without agreement. We now continue to assert our claim to over 50% of the total $20-million principal paid or to be paid, plus damages.
“The arbitral award, when and if made, and we hope it may be soon, will not now reflect a consensus arising from the negotiation of the parties, but the decision of the arbitrators. As we await it, we must consider a range of possible outcomes, and uncertainties of timing, but continue to press for a just solution which includes a resolution of the earlier court proceedings,” Bell outlines.
“We emphasise that although we are confident in our case, it cannot be assumed that an award will be made, or that it will be at or above any previously discussed level,” he adds.
Bell says the company continues its activities elsewhere.
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