Chinese Miners Booted Out of Gwampa Mining Deal After Unlawful Share Allocation

Chinese miners Ming Chang Sino Africa Mining Investment have been ejected from a mining investment agreement after the High Court ruled that shares issued to them in Gwampa Mining were unlawfully allotted. Gwampa Mining approached the High Court seeking rectification of its share register, citing an illegal issuance and allotment of shares.

The court heard that Gwampa Mining entered into an investment agreement with Eagle Italian Shoes, Ming Chang Sino Africa Investment, and Fuel Africa in April 2017 to jointly mine claims owned by DGL Investment Number 5 and pay royalties to Gwampa. However, the court found that shares were issued by DGL Investment Number 5 instead of Gwampa Mining, despite the absence of a shareholders' agreement and without the required capital contributions having been paid.

High Court Commercial Division judge Justice Bongani Ndhlovu ruled in favor of Gwampa Mining, ordering the removal of Ming Chang Sino Africa Investment, Fuel Africa, and Wang Ke from the disputed mining agreement. The judge concluded that Ming Chang Sino Africa Investment failed to provide proof of payments and relied on bare denials.

"The 3rd respondent has not provided proof of payments and relied on bare denials," the judge said. "The applicant's documentation is coherent and stands in stark contrast to the respondent's unsupported claims."

Justice Ndhlovu ordered the cancellation of the shares and directed the Registrar of Companies and Other Business Entities to effect the changes. The respondents were ordered to pay the costs of the suit.