Kazera Global plc has taken HeBei Construction to court for failing to pay US$9.5 million for acquiring its 100% interest in African Tantalum.
The deadline for HeBei Construction to pay was on September 4, 2024.
Kazera Global has instructed its attorneys to commence arbitration proceedings immediately.
HeBei Construction agreed to acquire Kazera Global’s shares in African Tantalum in December 2022 for US$13 million.
African Tantalum holds licence 77, which covers the Tantalite Valley mine.
Tantalite Valley Mine is a 50-km square mountainous area located about 30 km south of Warmbad on Umeis Farm 110 and Kinderzitt Farm 132 in the Karas region.
The licence is valid for the life of the mine or an initial period of 25 years, renewable up to 15 years at a time.
According to the agreement, HeBei Construction would have full operational control, with 100% ownership of the shares only passing once full payment was done.
HeBei Construction paid US$500,000 on December 30, 2022 and another US$716,265 on January 9, 2023.
A third payment of US$650,00 came on July 13, 2023, bringing the total to US$4.85 million.
Kazera Global pointed out in its December 14, 2023, strategic shareholder update that it retains the right to cancel the transaction and retain all amounts paid to date in the event of default by Hebei Xinjian.
Kazera Global also pointed out in December 2023 that it had started discussions with an alternative prospective buyer for Aftan in case Hebei cannot complete payment.
Kazera Global CEO Dennis Edmonds said while it is disappointing that HeBei Construction has failed to meet its payment obligations, they remain entirely confident in the legal position and are moving forward at pace with the arbitration process.
“We remain steadfast in our commitment to protect the interests of all our shareholders by pursuing the outstanding debt vigorously, and we are confident of a positive outcome,” Edmonds said.
Small-scale miners worked on the Tantalite Valley Mine until the mid-1970s when Steen Severin, a Danish-Namibian, took over using a shelf company called Tameka Shelf-company 4.
The shelf company owned the two farms – Kinderzitt 132 and Umeis 110 – under Tantalite Valley Estates, while the Warmbad Investment Holdings, for the locals, provided labour.
The Tantalite Valley Estates (49%) and the Warmbad Investment Holdings (51%) operated the Tantalite Valley project under the Namibian Tantalite Investments.
HeBei Construction has also failed to honour its agreement with Arcadia Minerals over the Swanson Tantalum Project.
HeBei Construction agreed to construct a plant infrastructure and execute mine development in May 2023 for a 38% equity in Orange River Pegmatite, where Arcadia Minerals holds an 80% interest.
