KUALA LUMPUR (July 7): Gold mining company Bahvest Resources Bhd has filed a suit to annul the RM20.4 million temporary resolution agreed between its wholly-owned subsidiary Wullersdorf Resources Sdn Bhd and Southsea Gold Sdn Bhd, over Wullerdorf's wrongful occupation of Southsea Gold’s mining lease land.
Previously, Wullersdorf agreed to pay a non-refundable deposit of RM13 million in two tranches to start talks pertaining to a final compensation sum, without prejudice to Southsea Gold claiming the full demand of RM20.4 million over the wrongful occupation of Southsea Gold’s land from September 2017 till April 2023.
According to Bahvest’s bourse filing on Thursday (July 6), the group’s suit filed with the Sandakan High Court also seeks the return of the RM6 million Wullersdorf paid Southsea Gold on May 10 as one of the tranches of its RM13 million non-refundable deposit of the RM20.4 million temporary resolution.
The suit also names former Bahvest managing director and CEO Datuk Lo Fui Ming, executive director Lo Teck Yong and Wullersdorf director Chong Khing Chung as defendants.
Fui Ming owns 75% of Southsea Gold and previously held a 13.18% stake in Bahvest back on May 10 prior to disposing his entire stake later the same month.
Bahvest said the suit also seeks a court declaration that Fui Ming and his son Teck Yong breached their fiduciary and statutory duties towards Bahvest. Together with Chong, Bahvest seeks a declaration of the trio’s breach of the same towards Wullersdorf.
Further, the group said the suit seeks to restrain Southsea Gold from taking any further step in respect to the RM20.4 million demand and temporary resolution, as well as from removing Wullersdorf from Southsea Gold’s mining lease land and/or hindering its operations.
This is further accompanied by Bahvest’s claims for general and exemplary damages.
At noon break, shares in Bahvest stood one sen or 4.44% higher at 23.5 sen, giving the group a market capitalisation of RM285.01 million.