Zambian court rules in favor of Arc Minerals in legal dispute

Published 15/08/2025, 11:22
Zambian court rules in favor of Arc Minerals in legal dispute

LUSAKA - Arc Minerals Ltd (AIM:ARCM) announced Friday that the Zambian High Court in Lusaka has ruled it has no jurisdiction to entertain further applications related to a March 2022 Consent Judgment, strengthening the company’s defense against claims brought by a former director.

The court concluded that the Consent Judgment obtained in March 2022 effectively closed the court record, according to a company press release. Arc Minerals is now taking steps through separate court filings to secure the full practical effect of the judge’s conclusion.

The ruling relates to ongoing litigation involving a former director of the company and Zambia Mineral Exchange Corporation Limited (Zamex). In 2024, Zamex filed an ex parte writ of fieri facias against Arc, its joint venture company Handa Resources Limited, and others in the Zambian High Court, seeking to recover up to $650,000 in alleged damages.

Arc Minerals stated that its lawyers have advised that impropriety is evident in both the documentation submitted in support of the writ and the process followed. The company maintains there has been no default on its part regarding the March 2022 Settlement Agreement.

The writ was subject to a court-ordered stay of execution, which is being replaced by a new stay that is already in effect. The company’s directors expressed confidence that the writ will be declared invalid.

Arc Minerals confirmed that its licenses, joint venture interests, and operations remain unaffected by the legal proceedings. The company noted it has no substantial assets in Zambia other than its 20% effective indirect interest in Handa Resources Limited.

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