Axe hangs over Core Mining

Corporation to form Canadile, a diamond mining venture, before the partnership was dissolved on allegations the former misrepresented to the State that it had capital to exploit diamonds in Marange when on fact it did not have money.
Mr Lovemore Kurotwi, a director in Core Mining and Minerals, is the largest shareholder with a 46 percent stake.
According to papers filed at South Gauteng High Court, the applicant – Babcock Africa Services – which operates the Volvo franchise in SA, said Core Mining had failed to pay close to R11 million.
Babcock is said to have supplied Core Mining with mining equipment.
“It is not in dispute that the respondent is indebted to the application in the sum of R10 882 184,42 plus interests thereon and that it (Core Mining) is unable to pay its debts,” acting judge Gautschi ruled.
Core Mining had made an application for adjournment of the liquidation hearing until October to allow Zimbabwean courts to finalise criminal charges against some Core Mining directors.
On the other hand, Core Mining is also challenging cancellation of the partnership with ZMDC.
But the court ruled that a favourable outcome to Core Mining was “nebulous” and “speculative” to warrant an adjournment of the hearing.
“The respondent is understandably unable to state with any measure of certainty when the criminal and civil proceedings in Zimbabwe will be finalised,” said the court.
“If there was some end in sight, and clarity that it will be a favourable end, the balance might have tilted the matter in the respondent’s favour.
“However, on the facts available to me, a favourable outcome to the respondent is too nebulous and speculative to warrant an adjournment.”