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SENIOR Chief Sailung’a of the Lunda has applied to be joined to the matter in which Terra Metals Limited and its shareholders have sued Zamsort Limited and Handa Resources Limited demanding payment of over US$5 million in respect of their shares sold to another investor.

Mr Kelvin Mulunda in his capacity as Senior Chief Sailung’a of Mwinilunga whose chiefdom hosts Kalaba Mine wants to join the matter as an interested party.
According to an affidavit in support of summons for joinder filed in the Kabwe High Court, the traditional leader stated that Handa Resources do not have his blessings to conduct any mining operations in his chiefdom.
He stated that he only discovered this year in May, that Zamsort, which he had given consent to conduct mining operations in the area had in fact sold its shares to Handa Reources.

“That it has since come to my attention that even though I restored the first defendant (Zamsort)’s consent to conduct mining operations in my kingdom, there is in fact a third party.
“The second defendant (Handa Resources) herein, who also purports to have the right to and has in fact been conducting mining operations in my chiefdom as they have brought on site various rigs, drills and other equipment with which they have been conducting mining operations,” he stated.

“That the said operations are without my consent and a violation of my rights as the traditional leader and custodian of the land rights over which my chiefdom extends,” he stated.
Senior Chief Sailung’a stated that he had initially withdrawn his consent granted to Zamsort after the company failed to fulfil its projects of undertaking developmental projects in his domain such as building a school and clinic.
“That after further consultation between my royal establishment and the first defendant, it was resolved to restore the mining consent to the first defendant and I subsequently rescinded my revocation,” he stated.
The traditional leader has requested that he be joined to the matter as his unresolved issues with Zamsort and Handa Resources mining without his consent be resolved in the case involving Terra Metals and its shareholders as opposed to him commencing a fresh action.

In this matter, investors in the mine namely Terra Metals Limited, Mumena Mishinge and Brian Chisala are demanding payment of the sum of US$5, 889, 407.00.
In default of payment of the said amount, full restitution of their 53 percent ordinary fully paid shares in Zamsort granted to the new shareholders.

They also want interest on the amount as by statute provided.
They had invested the said money in Kalaba Mine for recapitalisation when it was faced with financial challenges way back in 2015.

In July, the Kabwe High Court granted an interim injunction restricting Zamsort Limited and Handa Resources Limited from disposing of mineral tenements and assets for Kalaba Mine and appointed a lawyer, Mwenya Mukupa, as receiver.

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