It seems legal battles aren’t over yet for Tunisian phosphate specialist PhosCo (ASX:PHO) following an ‘unfavourable’ appeal decision in its case against former joint venture partner Tunisian Mining Services (TMS).
PhosCo is seeking to enforce seizure orders over TMS’ interest in the company that operates the Chaketma Phosphate Project, CPSA, alleging that TMS has failed to pay around $6.7 million worth of damages to PhosCo.
TMS owns a 49% interest in CPSA, and PhosCo owns the remaining 51%.
The dispute between the former partners dates back to 2017, with an arbitrator appointed by the International Court of Arbitration and the International Chamber of Commerce (ICC) on 31 November that year ruling in favour of PhosCo regarding the ‘fraudulent transfer’ of PhosCo’s interest in CPSA to TMS.
TMS was ordered to return the interest to PhosCo and pay more than US$4 million in damages.
However, PhosCo claims the damages have gone unpaid, and it’s now trying to find ways to legally compel TMS to comply with the 2017 ruling.
Alas, the Appeal Court in Tunis has refused PhosCo’s application to begin auctioning off TMS’ 49% interest in CPSA to offset the unpaid damages and costs, though PhosCo claims its right to seize CPSA shares remains in force, preventing TMS from trading the securities.
PhosCo Managing Director Simon Eley says the company is working to assemble a ‘district-scale’ phosphate portfolio in Tunisia’s Northern Phosphate Basin.
“While we are disappointed by this development in PhosCo’s efforts to secure full ownership of CPSA, which delays the advancement of the Chaketma Phosphate Project, we eagerly await the grant of the other permits.
Once we have reviewed the formal decision issued by the court regarding CPSA and Chaketma, we will seek advice on the most expedient way to secure TMS’ interest in CPSA.
The company is also advancing exploration for precious and base metals following the grant of the Simitu permit (100% PHO), with results from 173 samples covering the Bey prospect expected in the coming weeks.”
“Once we have reviewed the formal decision issued by the court regarding CPSA and Chaketma, we will seek advice on the most expedient way to secure TMS’ interest in CPSA”
The company says once the formal written appeal decision is issued, it will seek legal advice around the ‘most appropriate and timely way’ to secure TMS’ interest in CPSA.
Write to Joshua Smith at Mining.com.au
Images: PhosCo and Pexels
