Gwanda mine fights back against takeover attempt

Philemon Jambaya

ASSISTANT EDITOR

Vubachikwe Mine, a gold mine located near Gwanda, is facing a legal battle against a potential hostile takeover. The mine’s owner, Forbes & Thompson (Bulawayo) (Private) Limited, has filed an affidavit opposing an application submitted by Fawcett Security Operations to place the mine under corporate rescue.

Vubachikwe alleges that the application is part of a conspiracy orchestrated by Benjamin Turney, CEO of Kavango Resources PLC, a UK-based mining company.

The affidavit claims that Turney, along with former Duration Gold senior managers, Marida van der Spuy and Rob Forfar, are attempting to pressure Vubachikwe’s Managing Director to sell the mine to Kavango at a low price.

The affidavit details a series of accusations against Turney, van der Spuy and Forfar. These include,Turning staff against Vubachikwe’s management, undermining the mine’s financial position, stealing and providing confidential information and fabricating debts owed to several creditors.

Vubachikwe further claims that the application by Fawcett Security, a creditor owed US$170 000 for security services, is a front for this alleged conspiracy. The mine states that a settlement agreement with Fawcett had already been reached but was withdrawn inexplicably.

The affidavit strongly refutes claims of insolvency made by Fawcett Security. Vubachikwe argues that their financial records show a positive net asset position, exceeding liabilities by over US$21 million based on book value and over US$32 million based on a conservative resource valuation.

The mine also highlights its efforts to manage debt, paying over US$1.5 million to creditors in the past year. Additionally, they contest the accuracy of a forensic report by Rob Forfar, claiming it misrepresents Vubachikwe’s debt to the Zimbabwe Revenue Authority.

Vubachikwe acknowledges a significant debt of over US$12 million owed to its shareholder, Duration Gold. However, they emphasise that this debt is separate from any owed to third-party creditors.

With the opposing affidavit filed, the court will determine the validity of the claims and decide the future of Vubachikwe Mine. The mine is currently under care and maintenance following a worker’s strike in November 2022.