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- Celamin Holdings (CNL) will regain its 50.99 per cent stake in its Chaketma Phosphate Project following a successful court application to force the transfer
- In 2015, Celamin’s former joint venture partner, Tunisian Mining Services, illegally took Celamin’s majority interest in the project alleging it failed to make a payment
- Over the years, TMS has consistently failed to comply with the arbitration award the Tunisia Court enforced in September last year
- Despite the favourable ruling, Celamin will continue pursuing TMS for the $6.8 million in damages and costs it has paid over the years
- Celamin has even gone to the lengths of seizing TMS’ machinery and equipment to offset the costs it owes
- Company shares are up 4.65 per cent and are trading for nine cents
Celamin Holdings (CNL) will regain its 50.99 per cent stake in its Chaketma Phosphate Project following a successful court application to force the transfer.
The Court of Appeal in Tunis ruled in favour of Celamin regaining its interest in the project after an arbitral award declared this share was illegally taken by its former joint venture partner, Tunisian Mining Services (TMS), in 2015.
TMS initially confiscated the project alleging Celamin failed to make a payment.
“The decision to force the return of our interest in Chaketma gives Celamin, and our shareholders and stakeholders further confidence as we regain control of Chaketma,” Celamin Managing Director Simon Eley said.
According to Celamin, TMS has consistently failed to comply with the arbitration award the Tunisia Court of Cassation enforced in September 2019.
Despite regaining its share back, Celamin will continue to pursue its former JV partner for $6.8 million in damages and costs, as well as a range of other legal processes that date back to 2015.
As recently announced, the investigation has led to a seizure of trucks, cars, loaders and other mining equipment from TMS.
Late last week, Celamin’s legal team also seized two excavators located in Tajerouine, Tunisia, which TMS cannot access. Celamin may even choose to sell the machinery to offset the damages and costs that TMS owes.
Furthermore, Celamin has also taken measures aimed at holding the management of Chaketma Phosphate SA (CPSA) and TMS accountable for the decisions made following the illegal transfer of Celamin’s interest in CPSA to TMS.
“We will persist with these efforts unless and until TMS honours the arbitral award in full,” Simon assured.
Celamin believes this will pave the way for it to progress its goal of entering the global phosphate market. The company has begun due diligence and a GAP analysis to advance its development plans.
Company shares are up 4.65 per cent and are trading for nine cents at 12:54 pm AEST.
