In what looms as a sub saharan David v. Goliath battle, microcap gold explorer Cassius Mining (ASX: CMD) has served notice to the Government of the Republic of Ghana for breaches of their licencing agreement, with claims amounting to AUD $430 million.
Whilst the explorer boasts a market cap of just $1.7m at its current share price of $0.006, this has not deterred the company from seeking compensation from Ghana, with the view they have been treated poorly by the Government which had been actively encouraging Cassius to invest in Ghana.
Core to the $430m claim is Cassius Mining’s neighbour in Ghana – Shaanxi Mining – which Cassius commenced legal proceedings against in 2018 for underground trespass and unlawful removal of gold.
This claim for International Arbitration has been served against the Ghanaian Government and Ministerial officials (including the President of Ghana, the Minister for Lands and Natural Resources, the Attorney-General and the Minerals Commission CEO).
Within the notice, Cassius claims that Ghana had knowledge of Shaanxi illegally trespassing on and removing assets from Cassius’ licence, and failed to provide any protection.
Also included in the notice are breaches of licence to re-demarcate Cassius’ licence boundaries which would transfer assets to Shaanxi, and refusals to issue routine permits to Cassius without cause whilst Shaanxi continue illegally operating within Cassius’ assets.
The notice has been served by London-based firm Pinsent Masons which has a successful track record in International Arbitration with Cassius in the process of finalising its funding for the litigation.
With Cassius tied up in regulatory holdups, little progress has been made at their Gbane Gold Project which in 2018, the company announced an exploration target of 300,000 ounces of gold and contained metals.
At the current gold price of A$2,450/oz, it would suggest the Project contains around $735 million in gold.
Editor’s note: The feature image originally published with this article was changed at the request of Cassius Mining.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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