An Isle of Man mining firm has sued Canada’s Simba Energy Incorporated for allegedly failing to honour a 2011 $1.5 million (Sh150 million) deal involving the sale of a company prospecting for oil in Kenya.
Barakat Exploration Incorporated says the Canadian firm has refused to pay it the full amount for the shares it owned in Simba Energy’s Kenyan subsidiary, which is carrying out oil exploration in north-eastern Kenya.
Barakat claims Simba only paid it one-sixth of the full amount and has now refused to pay the balance.
The Isle of Man firm says Simba Energy has ignored several demands it has sent seeking payment which was to be completed by July 2014, and now wants the amount paid together with interest.
“Simba paid Barakat $250,000 (Sh25 million) pursuant to a takeover, leaving a balance of $1.25 million (Sh125 million) which has not been paid to date. Despite several demands made by Barakat and its lawyers, Simba has failed to settle Barakat’s claim,” the Isle of Man miner says.
Simba has, however, denied buying Barakat’s shares, and says the payments it made to the Isle of Man company were for other transactions not related to any takeover deal.
The company says Barakat frustrated the contract that was to see it take over all shares in Simba Africa Rift Energy Limited, hence it is not entitled to any money as per the 2011 deal.
But Barakat has filed as evidence a letter it sent to Simba on January 23, 2015 in which it demands the Sh125 million within seven days.
SOURCE: BUSINESS DAILY