Business
Kazera Wins US$11.9m Ruling in Aftan Arbitration
Kazera Wins US$11.9m Ruling in Aftan Arbitration.
About this update from Kazera Global Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n7 May 2025\nKazera Global plc\n(\"Kazera\", \"the Group\" or \"the Company\")\n \nKazera Wins US$11.9 million Ruling in Aftan Arbitration\n \nKazera Global plc (AIM: KZG), the AIM-quoted investment company, is delighted to announce that, further to its announcement of 24 September 2024, it has now received a comprehensive and favourable ruling in binding arbitration proceedings against the Namibian company, Hebei Xinjian Construction CC (\"Hebei\"), with a total award of c.US$11.9 million plus costs.\n \nARBITRATION OUTCOME\nThe binding arbitration proceedings, held in Windhoek, Namibia and governed by the dispute resolution provisions of a December 2022 sale agreement, concluded that Hebei had breached its contractual obligations by failing to make full and timely payment to Kazera for the acquisition of Kazera's interest in African Tantalum (Pty) Ltd (\"Aftan\").\n \nHebei has been ordered by the Arbitrator to pay to Kazera:\n· An amount of US$9.2 million\n· Interest in the amount of US$1.6 million accrued up to 8 October 2024\n· Interest at the rate of 20% per annum on the amount of US$9.2 from 9 October 2024 to date of payment (being US$1.1 million as at 6 May 2025)\n· Full legal and arbitration costs\n \nAs at 6 May 2025, the total amount accrued was therefore, US$11.9 million plus costs.\n \nThe ruling validates Kazera's consistent position and brings clarity to a complex and long-running contractual dispute.\n \nBACKGROUND\nAs announced on 20 December 2022, Kazera entered into an agreement with Hebei for the sale of its entire interest in Aftan, including the transfer of related shareholder loans, for a total consideration of approximately US$13 million, with Kazera retaining 100% of the issued shares in Aftan as security until the consideration is paid in full. Hebei made only partial payments totalling US$4.1 million and, having failed to meet the balance of its obligations despite formal written demand, was in br...