Contested gold dump sale agreement enforced

Source: The Herald – Breaking news.

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 Justice Happias Zhou dismissed Red Granite Investments’ defences as baseless, ordering it to comply with the original terms of its deal with Navada Resources (Pvt) Limited.

Fidelis Munyoro-Chief Court Reporter

THE High Court has enforced a contested gold dump sale agreement between two gold mining companies, underscoring the sanctity of contracts and rebuking attempts to renege on obligations for financial gain.

Justice Happias Zhou dismissed Red Granite Investments’ defences as baseless, ordering it to comply with the original terms of its deal with Navada Resources (Pvt) Limited.

The dispute centred on an October 29, 2024 agreement where Red Granite sold 2 000 loads of gold dump (processed ore) to Navada Resources for US$ 354 000. Navada paid in full and collected 616 loads before heavy rains halted operations.

When rains subsided in March 2025, Red Granite allegedly barred access, demanding an extra US$ 300 000, claiming the initial price was below market rate.

Navada sought the court’s intervention to enforce the contract, arguing the agreement remained binding, citing payment receipts and written terms.

Red Granite countered that rains had rendered performance impossible and insisted the parties had orally agreed to a refund.

It accused Navada of forum shopping by filing in Harare instead of Masvingo, nearer to the dumpsite.

Justice Zhou swiftly dismissed jurisdictional objections, stating Zimbabwe’s High Court is a single entity with multiple stations.

On the refund claim, the judge found no evidence of a valid substitution agreement, noting Red Granite failed to refund the US$ 245,491 balance as proposed.

Citing precedent, Justice Zhou emphasised contractual sanctity: “Parties are bound by their lawful agreements. Courts cannot permit sellers to exploit buyers post-agreement.”

The judge rejected Red Granite’s “impossibility” defense, noting rains were temporary and performance remained feasible.

Specific performance was deemed appropriate, as Navada had no alternative remedy.

The court highlighted Red Granite’s “reprehensible conduct” in seeking higher profits post-sale, justifying punitive costs.

Samukange Hungwe Attorneys represented Navada, while H Tafa & Associates acted for Red Granite. The Sheriff and Attorney General’s office did not oppose the application.