Asa, Zindico in row over Freda

Source: Asa, Zindico in row over Freda | The Herald January 10, 2017

Business Reporter —
ASA Resources are alleged to have opened talks with a new indigenous partners over Freda Rebecca gold mine despite the existence of an agreement between the company and Zindico Consortium.

In a letter written to Asa Resources executive chairman Yat Hoi Ning by Messrs Manase and Manase legal practitioners representing Zindico Consortium, the mining company, which is parent to Freda Rebecca and Bindura Nickel Company, is accused of being in breach of a valid 2013 share purchase agreement.

“We are informed by the National Indiginisation and Economic Empowerment Board that you have written to them informing them that you are in discussions with another group. This comes as a surprise as you have not informed Zindico of the development. We and the company negotiated in good faith and reached an agreement, so there was a commitment and an obligation to complete,” read part of the letter which accompanied papers filed at the High Court under case number HC/H/12929-16.

The share purchase agreement was signed by the company and the indigenous consortium comprising of Bindura Trust, Zindico Resources, Cruciate Investments and Minehood Corporation.

“There is a view generally held by would be investors and investors that they can torpedo the law by getting people to front as indigenous partners when in truth they are not.

“Such blatant disregard of the laws of Zimbabwe and attempts to trivialise our laws cannot be tolerated,” Manase and Manase wrote to Asa Resources.

In the botched transaction, Zindico Consortium had a sale and purchase agreement with Mwana Africa for 26 percent of Freda Rebecca.

But upon taking over, Yat Hoi Ning, the current Asa executive chairman, however, professed ignorance of the agreement and maintained that he had never heard of Zindico Consortium

Meanwhile, in a statement last week, Asa Resources Group said it was not aware of any court papers and has no knowledge of the alleged claim.

“The group wishes to confirm that it has not been served with any court papers and has no knowledge of the alleged claim. There has been no communication with Zindico or any other party about the allegations. The group will make a further announcement as appropriate,” said Asa Resources.


  • comment-avatar
    Morty Smith 5 years ago

    Most laws made by ZANU since they came to power are trivial, childish, not thought out. Senior ZANU’s do as they please without reference to the law.

    This article is simply a noisy ZANU trying to get something for nothing. Quite a common behaviour actually. You might even say a defining characteristic. Always remember that The Herald prints nothing without approval from on high