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.