The ongoing fight for Kalengwa mine in Northwestern province has attracted negative attention on the London Stock Exchange.
Using Minister of Mines and Mineral Development, Richard Musukwa and his Permanent Secretary Barnaby Mulenga, Shawaki Fawaz has once again forcibly taken over Kalengwa mine.
To stop this illegality, Moxico Resources has commenced Contempt of Court proceedings in Ndola against Shawiq Fawaz and others after they abrogated the court ruling which reinstated Moxico as the rightful owners of Kalengwa Mine in Mufumbwe District of North Western Province.
Contempt charges have been filed against Shawaki Fawaz, Brenda Gama, Craig Meerholz, Colin Bird, Bezant Resources, Xtract Resources and Lunga resources on Thursday.
The following note has been circulated by SP Angel’s Morning View to to Professional Clients and Eligible Counterparties of the London Stock Exchange:
Bezant Resources (BZT LN) 0.19p, Mkt cap £5.5m – Xstract and Bezant subject to Contempt of Court proceedings and High Court Order of Injunction in relation to licenses in Zambia occupied by KPZ
Xstract (XTR LN) – 1.32p, Mkt cap £6m
• Newspaper articles in Zambia allege that Bezant Resources, Xstract Resources and certain related parties are facing charges for contempt of court in relation to dealings with KPZ International Limited ‘Kalengwa Processing Zone Ltd in Zambia’.
• KPZ International Limited is reported to be mining and occupying land around the Kalengwa mine site that is owned by Euroafrica Kalengwa Mines Limited and one other private UK company.
• We have seen papers stamped on the 1st October in the High Court of Zambia against Bezant, Xtract, Shawaki Fawaz, KPZ, Lunga Resources and others in relation to their alleged activities at Kalengwa.
• The Zambian Supreme Court are reported to have repeatedly ruled in favour of the owners of Kalengwa as the rightful owners of the licence
• The case claims the alleged Contemnors have wilfully acted in contempt disregard of the Zambia High Court’s Injunctive Orders dated 26th July 2019 and 28 September 2020.
• The court injunction carries a penal notice which cautions that if the defendants fail or neglect to comply with the terms of the order, they shall be liable for contempt of court and be committed to prison for breach of the order.
• KPZ is reported in the Zambian press to be associated with Shawiq Fawaz who is also reported to allegedly have a string of serious convictions according to more than one Zambian-focussed news website.
• Bezant Resources have a jv agreement with KPZ International Ltd in which they hold a 30% interest in KPZ Intl.
• Xtract Resources also have a have an agreement with KPZ to act as a contractor on the Lakengwa Mine.
• Shawiq Fawaz’s organisation are alleged to have used violence, force and equipment to illegally occupy the mine.
• Shawiq Fawaz is reported in the Zambian press to have been sentenced to 20 years for murder in 1994 but was acquitted when the only eyewitness changed his testimony before the Supreme Court hearing.
• It is reported that a warrant was also issued for Shawiq Fawaz’s arrest in 1998 for drug dealing, that he was also arrested and charged with aggravated robbery in 2006 and was arrested and charged with aggravated robbery and conspiracy to murder in 2007.
• It is alleged in the Zambian press that Shawiq Fawaz is a partner in KPZ ‘Kalengwa Processing Zone’ which is in the joint venture with Bezant Resources.
Conclusion: Xstract and Bezant have become involved with assets which are not owned by KPZ according to the press reports and papers in the High Court of Zambia.
We look forward to further clarification from both companies and their directors.
*The analyst is a shareholder in Moxico Resources and has previously visited Moxico mining assets in Zambia