CAPITAL MARKETS

Court locks Bolnisi out of Quartzite

A GEORGIAN court has wrested control of Quartzite Ltd from Bolnisi Mining Operations NL and handed it to its 50% partner, state-owned corporation JSC Madneuli.

Greg Tubby

The Bolnisi District Court upheld claims by Madneuli that Quartzite has guaranteed the debts of Madneuli, that Bolnisi’s representatives on the Quartzite board were not validly appointed, and that its interest in the company was not validly registered.

The court effectively excluded Bolnisi from the decision-making process of Quartzite and from giving instructions on behalf of the company.

“Disputes and spurious claims by Madneuli are commonplace and part of the nature of doing business in Georgia. We have successfully managed similar disputes and claims in the past,” the company said.

Last Wednesday, a Madneuli representative purporting to represent Quartzite excluded two plant operators appointed by Bolnisi from the mine site, the company said. He then installed two operators nominated by himself and seized gold ore from the plant with a gold content estimated at 1500 ounces.

Bolnisi has lodged an appeal with the higher Regional Court against the District Court ruling and expects a decision imminently.

It has also challenged in the District Court the guarantee of Madneuli’s debt, which was done at the soled instigation of a Madneuli representative.

Trading of Bolnisi shares on the ASX was halted last Friday.

 

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.