Frank Timis and African Minerals in £25m damages claim
It appears African Minerals, run by controversial businessman Frank Timis (in photo), has again ruffled feathers in the financial field. Investment bank Renaissance Capital claim the company, and Frank Timis have repeatedly failed to honour a fee arrangement relating to fundraising carried out by African Minerals between 2008 and 2010.
The bank is claiming damages “in excess of £25m”.
The dispute centres on a £170m cash injection by Chinese state-owned China Railway Materials Commercial Corporation to develop Sierra Leone’s Tonkolili iron ore mine, a deal for which Renaissance Capital claims it is owed substantial fees for facilitating. The money was used to invest in African Mineral’s main asset, the Tonkolili iron ore project in Sierra Leone, which saw a huge rise African Minerals’ share price.
Renaissance claims the work was covered by “umbrella agreement” signed with African Minerals in 2008, and that an oral agreement between Mr Timis and its chief executive in 2010 was never honoured.
Presently African Minerals are in the process of raising further equity from another Chinese institution for mine development and railway.
As reported in SEM’s previous articles , Mr Timis is no stranger to controversy!
Various newspaper’s attempts to contact African Minerals and Renaissance Capital have met sealed lips!
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