Shuka Minerals PLC on Thursday said it has signed a definitive settlement agreement with Upendo Group.
Shuka is a Africa-focused mine operator and developer, previously named Edenville Energy PLC. Its shares closed up 4.4% to 10.18 pence each in London on Thursday.
The company said it has signed a definitive settlement agreement with Upendo, who hold a residual 10% interest in the Rukwa coal mining licence. The dispute with Upendo is regarding the interpretation of the ‘residual’ interest entitlements comprise and has been dragging on for ‘many’ years.
‘The dispute has been vigorously defended and where necessary/appropriate appealed by the Company in the Tanzanian courts. It has been taking time, management resources and causing reputational and relationship damage to the Company in-country. As a result, the Board believes that a settlement drawing a line under the dispute is the most appropriate route forward,’ Shuka said
The settlement involves the immediate payment to Upendo Group of $110,000, the immediate settlement of all proceedings and a waiver of all or any related claims by all parties howsoever arising.
Chief Executive Officer Noel Lyons said: ‘We are very pleased to have achieved the amicable settlement with Upendo, as it enables us to review and determine the strategic direction of our coal mining interests at Rukwa, without the prospect of an overhanging legacy dispute. This clears the way for us to be more decisive and cohesive in our future decisions.’
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