Camec, Central African Mining & Exploration Company Plc, announced on 11 April 2008 that it had acquired 60% of Todal, which owns the Bougai and Kironde concessions near Gweru, Zimbabwe
For its 60% in Todal, Camec paid US$ 5m in cash, and issued 215m of its shares, worth about £100m at the time. Camec also loaned US$ 100m to Todal’s parent company in order to facilitate the start up of building a mine at the concessions. For these efforts, Camec learned later in 2008 that ownership of the Bougai concession was being hawked around by Kameni, in an effort, apparently successful, to raise hundreds of millions of rands (among other currencies) from investors.
As 2008 wore on, Kameni started to widely advertise that it controlled Bokai. In marketing materials, Kameni claims that its subsidiary Mid-Ma Platinum (74.9% held by Pomachan, a 100% subsidiary of Kameni) holds Bougai. In December, with the global platinum sector in absolute crisis, Kameni announced plans to raise R6.5bn (about US$630m) on the Johannesburg bourse, by mid-2010, "the funds being intended to build platinum and chrome mines in South Africa and Zimbabwe".
On 5 March 2009, Kameni further announced that "it had raised R300 million – its minimum capital raising requirement – in a seed capital raising to fund its exploration programme in South Africa and Zimbabwe". Kameni advised further that its "two major assets – the near-surface PGM [platinum group metal] Kalkfontein Project in South Africa and the surface PGM and chrome Bougai Project in Zimbabwe – lend themselves to rapid exploration, development and cash-generating mining".
For days and weeks and months, Kameni’s executives and/or directors have persistently declined requests for any interview to explain Kameni’s claims to Bokai, but have instead supplied limited and incomplete answers via "strategic communication" entity Russell and Associates in Johannesburg. On 16 July 2009, James Duncan of Russell and Associates stated: "At the time the seed capital raising took place, there was no dispute regarding rights to the Bougai claims".
It was on 19 February, while the seed raisings were taking place, that Walter Shamu, MD of Todal, wrote Stephen Gorven, CEO of Kameni. Shamu pointed out in no uncertain terms that Kameni’s "marketing materials" referring to Kameni’s "Bokai" project apparently pointed to an "overlap with existing Todal claims". Shamu urgently requested a meeting to resolve the issues.
With a full blown dispute in the background, Kameni’s seed raising continued. The battle had been brewing for months. More than two months previously, on 5 December 2008, Shamu wrote the mining commissioner, Gweru, expressing alarm that Kameni’s Mid-Ma was apparently claiming rights "over mining claims already granted to Todal".
Duncan states that "Kameni had – and still has – documentary proof of its rights to the claims from the appropriate authority including original certificates of registration and letters of confirmation of their validity from the Zimbabwean Mines Department", but has not supplied copies of such materials, or anything else. With Duncan clearly suggesting that Bokai has been sold twice, he also states that: "as we have said to you at least twice now, the matter has been referred back to the appropriate authority, the Zimbabwean Ministry of Mines, for clarification and Kameni is confident of an outcome in its favour".
Again, Kameni has not supplied proof of such a process. Nothing that Duncan states checks out. Information available – of which there is no real shortage – indicates that Kameni’s "claims" in Zimbabwe – Bokai is not the only one – have been annulled and repudiated by the relevant authorities.
Dominique Mabayiwa, CEO of the Zimbabwe Minerals Development Corporation (ZMDC), which owns the balance of 40% in Todal, mentions the word "motive" when asked about Kameni’s conduct. He also speaks for the Zimbabwe government, given the ZMDC’s status as a parastatal.
Duncan states that "from the outset, Kameni has and continues to act in terms of the best legal advice in both South Africa and Zimbabwe", but, again, provides no details, evidence or anything else that would throw light onto Kameni’s bizarre and twisted trail. For now, investors who ploughed hundreds of millions of rands into Kameni will simply have to sit on the edge of their seats. (Mineweb.com)