Red Rock Resources plc said it had served a precautionary attachment on its local partner, VUP SA, relating to copper-cobalt projects in the Democratic Republic of Congo.
ADVICE
In March 2019 Red Rock, through its local subsidiary, signed a joint venture agreement with Congolese VUP (Vumilia Pendeza SA) over certain assets in Katanga.
The partners established a JV company with Red Rock owning 50.1%.
The company said that VUP had served an order on parties, including a subsidiary of Glencore plc, for $15 million relating to VUP’s purported surrender of the JV assets.
In response, Red Rock has served a precautionary attachment order on VUP which protectively seizes 50.1% of the $5m understood to have been paid so far.
The company added it was also seeking advice in the Congo and in London.
As at the 30 June 2020 balance sheet date, Red Rock was carrying the project in its books at £583,000.
Chairman Andrew Bell said that the company was now in a better position to understand what had been happening at the VUP project which has been on hold “for some time”.
“Our vigour in taking prompt action and obtaining satisfaction where our interests have been threatened in the past, and our record of success, should be a deterrent to those thinking they can take our assets.
“Impunity does not exist any more; neither in the DRC, nor certainly in London.
“We are confident in our position morally, and believe that remedies will be available which may be of substantial benefit to shareholders.”