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Stockbroker Tim Kestell claims resources heavyweight Grant Davey imposed “strange” and unachievable conditions when their gentleman’s agreement regarding what Mr Kestell was to receive from a uranium mine acquisition deal was finally documented.
Mr Kestell claims Mr Davey reneged on their oral agreement about 18 months after he first introduced the Kayelekera project opportunity to Mr Davey in September 2018.
Mr Kestell was in the Supreme Court witness box on day two of the civil trial on Tuesday, facing questions from his lawyer, as well as defendant Grant Davey’s lawyer, around his claims that he’s owed about $11 million from the purchase of the Kayelekera mine in Malawi from Paladin Africa in 2019.
The men are in dispute over the terms of Mr Kestell’s 4.5 per cent entitlement and whether the stake was a percentage of the project itself or of one of the entities that had some ownership. The mine is now owned by Lotus Resources (LOT) and is yet to produce uranium.
It’s understood defendant Mr Davey’s position is that the agreement was always conditional and that Mr Kestell didn’t meet the requirements entitling him to the shareholding.
Mr Kestell’s lawyer, Gary Cobby, showed the court emails and texts in which Mr Kestell had requested the Bare Trust Deed Document. In June 2019, Mr Davey responded he was “flat out” and could not provide the requested written agreement until after the acquisition was announced to the ASX.
Mr Kestell said it was about 18 months after he introduced the project to Mr Davey that he learned of conditions defining his stake — when he was finally sent a draft at the end of March 2020.
“Straight away there were things in there that had nothing to do with what we agreed upon. There were extra conditions in there,” he said.
“There were strange conditions I could never have achieved and were never part of discussions.
“He wasn’t accepting what I put forward and I wasn’t comfortable with what he put forward after the trust had disappeared.
“I brought lawyers in. We had an agreement together and Mr Davey has reneged on that agreement.”
In cross-examination, Mr Davey’s lawyer, Martin Bennett, put to Mr Kestell that there were always going to be conditions, that Mr Kestell did not meet the conditions, that his interest was “indirect”, and that the interest was in the company now named Kayelekera Resources Pty Ltd. Mr Kestell does not agree.
The trial continues tomorrow.
