African Consolidated Resources, (ACR) says it will pay its lawyer Jonathan Samkange with shares to settle legal fees.
But it’s not clear whether Samkange asked for a stake or is just an offer by the company.
Samkange is representing the resources company in its legal dispute with government over its diamond claims in Chiadzwa, in eastern Zimbabwe. The wrangle has dragged since 2006.
In a statement, ACR said it would issue and list on the London Stock Exchange’s AIM 600 000 new ordinary shares worth $94 205 or £60 000.
The joint ownership agreement was signed by ACR CEO Andrew Cranswick, Roy Tucker and two Ambrian Partners Limited representatives, Richard Swindells and Jen Boorer, and Susie Geliher of St Brides Media & Finance Limited.
“The subscription proceeds have been used to satisfy fees payable to the firm in which Samkange is a partner in respect of legal fees relating to the company’s dispute in relation to its diamond claims at Marange,” said ACR in a statement.
“Application will be made for the admission of the new shares to trade on the AIM market of the London Stock Exchange. Following the issue of the new shares, the total number of shares in issue will be 364 002 451 ordinary shares with each share carrying the right to one vote,” said ACR.
ACR employees in October acquired about 1,4% of the mining company through the purchase of 5 million issued ordinary shares under the Employee Benefit Trust in a joint ownership agreement with management.
The shares, each of which carries the right to one vote, increased ACR’s ordinary issue to 369 402 415.
The shares were acquired jointly with a number of directors and executives of the group pursuant to certain conditions set in the agreement.
The purchase of the shares was initially funded in full through loan contributions by the miner and the trustee’s subsidiary and would be repaid at an interest rate of 5% per annum on the subscription price of 9 pence per share.
ACR is a Zimbabwe-focused resources company and has interests in diamond, gold, nickel, platinum, chrome and coal.
The company is embroiled in a legal battle with the government over the cancellation of its diamond mining titles in Chiadzwa, which has since been declared a state reserve area.