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Gerald Group (“Gerald”), the
world’s largest independent, employee-owned metals trading house,
announced that the long-standing dispute between the Government of
Sierra Leone (the “Government”) and SL Mining Limited (“SL Mining”) /
Gerald Group (“Gerald / the Group”) has been amicably resolved in the
best interests of the people of Sierra Leone, the Government and SL
Mining/ Gerald Group. A binding agreement was signed by both parties on
Friday, May 7, 2021.
In the spirit of the resolution,
SL Mining / Gerald Group and the Government will withdraw their
respective legal claims / allegations under both ICC and ICSID
arbitrations, and both Gerald and the Government will provide full
support to ensure a rapid commencement of mining operations.
The negotiated amicable out of
court settlement entails broadly the following terms (amongst others):
- All legal cases and /or
allegations between the parties will be indefinitely withdrawn.
- A new company ("NewCo")
will be formed wherein Gerald Group will own 90 percent interest
and the Government will own a 10 percent non-dilutable interest.
- NewCo will take over all
assets and rights of SL Mining, which include Marampa North, Marampa
South, and all property plant and equipment.
- Gerald has committed to
increase materially the production of Marampa.
- NewCo to begin operations
by 1st of June 2021.
- Gerald will have the
immediate right to ship the current stockpile, which is ~707k tons of
iron ore. Gerald will pay a fixed sum of USD 20 million in two
instalments of USD 10 million prior to 31 December 2021.
- Gerald / NewCo will
negotiate during the course of May 2021 a new Mining Lease Agreement
that will be a win-win for the Government and Gerald.
Mr. Craig Dean, Gerald Group’s
Chairman and Chief Executive Officer, stated, “I am delighted that we
have been able to resolve our differences and have a fresh start and new
beginning with the Government of Sierra Leone. I would like to thank His
Excellency, President Bio, for personally working with me and the team
to resolve this long- standing situation in the best interests of the
people of Sierra Leone, the Government and Gerald Group / SL Mining. We
look forward to a positive long-term working relationship”.
Source: Gerald |
