Cassius Mining Seeks $277 Million in Damages from Ghana
Cassius Mining, an Australian gold miner, has initiated legal proceedings against Ghana at the London Court for International Arbitration, seeking $277 million in damages. The claim revolves around alleged breaches of contract. It led to the termination of the Gbane gold project, a 13.8-sq.-km concession in northeastern Ghana’s Talensi district. According to Cassius, the non-renewal of its prospecting licence by Ghana deprived the company of the opportunity. In order to establish a profitable gold mine. The claim, backed by independent expert reports, represents lost profits and damages for the failure to develop the mine.
Disputes with Chinese Miner Earl International
The case is intertwined with a long-standing dispute between Cassius and Earl International, a China-controlled entity operating the neighbouring Shaanxi gold mine. Cassius alleges that Earl International illicitly mined gold worth tens of millions of dollars from its concession. This is an issue the Ghanaian authorities reportedly failed to address. Investigations have also linked Earl International to extreme measures, including the alleged use of toxic gas, resulting in multiple fatalities at its mining operations since 2013. Cassius claims that the Ghanaian government’s inaction further exacerbated its losses.
Support and Progress of the Legal Case
Cassius has enlisted support from Perth-based AMC mining consultants and arbitration specialists Secretariat in Washington D.C. to strengthen its case. The company expressed confidence in achieving a favourable outcome. Whether through a hearing or an earlier settlement. Lastly, the legal action has generated market interest, with Cassius shares rising from 0.9¢ to A1.3¢. Valuing the company at A$9.2 million ($8.2 million). Moreover, Managing Director David Chidlow stated that the proceedings are aimed at securing justice for shareholders and reclaiming the project’s lost value.
