Supreme Court dismisses Vubachikwe rescue bid

The Supreme Court of Zimbabwe has dismissed an application by Fawcett Security to place Vubachikwe Mine under corporate rescue, ruling that the move constituted an abuse of court process.

The judgment brings to an end a protracted legal dispute that spanned more than two years and has been welcomed by Duration Gold, the mine's owners, as a decisive affirmation of judicial integrity.

The case originated from a 2024 application by Fawcett Security, then chaired by Andy Laing, which sought to place the mine under corporate rescue over an alleged outstanding debt. However, Duration Gold maintained that the debt was relatively minor and had already been provided for through Forbes & Thompson, the company under which Vubachikwe operates.

Duration Gold spokesperson Robert Mukondiwa said it was "perplexing" that a creditor would reject payment and instead pursue litigation.

"This was not a case of inability to pay, but rather a refusal to accept payment," he said.

The High Court of Zimbabwe had initially dismissed the matter after Fawcett's lawyers conceded procedural flaws, including failure to properly serve all affected parties. Fawcett subsequently appealed to the Supreme Court, which upheld the dismissal and criticised the continued litigation as an abuse of process.

Duration Gold credited its legal representative, Tawanda Zhuwarara, for a disciplined handling of the case, describing his approach as "meticulous" and firmly grounded in law.

The dispute had far-reaching implications, temporarily delaying expansion and recapitalisation plans at the mine. However, Mukondiwa said the ruling now clears the way for renewed investment and operational recovery.

"With legal certainty restored, Duration Gold can now move decisively to invest, recapitalise and enhance production at Vubachikwe Mine without let or hindrance," he said.

The case also exposed allegations of a broader scheme to take control of the mine. Allan Dolan, managing director of Forbes & Thompson and a key shareholder in Duration Gold, previously alleged that the corporate rescue application was part of a coordinated attempt to engineer a hostile takeover.

According to court filings, the alleged plot involved UK-based businessman Benjamin Turney, former chief executive of Kavango Resources Plc, working alongside former senior mine managers and other parties to pressure existing shareholders into selling the asset at a reduced value.

Fawcett Security's refusal to accept payment of the US$181 067 debt, despite funds being made available, was cited by mine owners as evidence of ulterior motives. They argued that if debt recovery had been the primary objective, the creditor would have accepted settlement or enforced its secured interest.

The mine further maintained that it was solvent, citing shareholder-backed repayment arrangements and payments exceeding US$1.6 million to creditors over a 12-month period. It also disputed claims that it owed significant sums to authorities such as the Zimbabwe Revenue Authority, instead asserting that it was owed a tax refund.

Vubachikwe Mine, which had been placed under care and maintenance following an illegal strike in November 2022, warned that corporate rescue would have jeopardised investor confidence and placed a complex gold mining operation in inexperienced hands.

With the legal battle now settled, the mine is considering legal action to recover losses incurred during the dispute, while positioning itself for renewed operations and growth.