11th November
2024
Medcaw Investments
plc
(“Medcaw Investments” or the
“Company”)
Update of Abyssinian
Project
Medcaw Investments plc (LSE: MCI), a listed
acquisition vehicle, acknowledges the recent press release issued
by Abyssinian Metals Limited (AML). The Company remains fully
committed to the previously announced transaction to acquire AML,
facilitating its public listing on the Main Market of the London
Stock Exchange through a reverse takeover. The board of Medcaw
Investments will continue to work closely with AML and monitor
developments in the ongoing
dispute.
Unlawful seizure and detention of Abyssinian Group
executive
8 November
2024
Over the past 12 months, Abyssinian Metals Limited
(AML), African Mining and Energy Pty Ltd (AME), Abyssinian
Investments BV (a Netherlands
company), and Kenticha Mining PLC (together the Abyssinian Group),
have been negotiating in good faith to resolve their dispute with
the Federal Democratic Republic of Ethiopia (including Oromia State) in relation
to the Kenticha Lithium Project. The dispute is described in more
detail in the Background section
below.
Recently, our colleague and fellow director of
Abyssinian Group subsidiary AME, Mr Ali
Hussein Mohammed, an Ethiopian national resident in
Addis Ababa, was unlawfully
detained by Oromia State Officials. This occurred at a meeting at
the Oromia State offices in Addis
Ababa. When Ali was invited to this meeting, he was told
that the purpose of the meeting was to finalise the agreement to
resolve the dispute concerning the Kenticha Lithium Project. The
Attorney General representing Oromia State at the meeting purported
to place Ali under arrest, without presenting a warrant or
informing him of any charges (contrary to both Ethiopian and
international law). Ali was then taken away in an ambulance (he had
no medical condition to require ambulance transport) to an Oromia
State building outside Addia Ababa,
where he was held against his will. We understand that Ali
was later charged with illegal mining at Kenticha, although no
evidence has been presented to support this charge. Further charges
have apparently been levelled against Ali, in support of which no
evidence has been presented either.
The unlawful seizure and detention of Ali occurred
during a negotiation process under the Agreement on Encouragement
and Reciprocal Protection of Investment between the Federal
Democratic Republic of Ethiopia
and the Kingdom of The Netherlands
(Treaty). Under the Treaty, all parties to a dispute are legally
obliged to maintain the status quo and refrain from any acts that
may aggravate the dispute during the negotiation process. In
addition to other violations of the Treaty and international law,
this obligation has been breached by the Federal Democratic
Republic of Ethiopia (which is
legally responsible for the conduct of Oromia State and its
officials).
The Abyssinian Group
calls upon the Federal Democratic Republic of Ethiopia to compel Oromia State to release Ali
from unlawful detention immediately. Assistance is being provided
by the Australian Embassy in Addis
Ababa, in conjunction with other bodies we are seeking
assistance including the British Embassy, the UN Working Group on
Arbitrary Detention, the African Union, the European Union in
Ethiopia, the US State Department,
the World Bank, the IMF, the International Red Cross and Amnesty
International.
In light of these alarming developments, the
Abyssinian Group will proceed to arbitration at the International
Centre for Settlement of Investment Disputes (ICSID), in accordance
with the Treaty. ICSID is a World Bank body headquartered in
Washington, DC. In addition to its
existing claims under the Treaty, the Abyssinian Group will raise
the unlawful detention of Ali, with ICSID, along with other acts of
intimidation and harassment that personnel employed by the
Abyssinian Group have suffered and seek appropriate
relief.
Stephen Miller,
Managing Director of AME, offered the following
remarks:
"We are shocked by the actions of the government of
Oromia Regional State in unlawfully seizing and detaining our
colleague Mr Ali Hussein Mohammed.
Our most pressing task is to secure the immediate release of
Ali.
The Abyssinian Group came to Ethiopia in good faith and has invested
substantial capital and expertise in the Kenticha Lithium Project.
For the last 12 months, the Abyssinian Group has persisted with
negotiations to resolve the dispute in accordance with the Treaty.
Prior to Ali’s unlawful seizure and detention, we understood that
all parties had agreed to a path toward resolution of the dispute
and that we would soon be permitted to resume our work on the
Kenticha Lithium Project. Sadly, it is now apparent that we were
misled.
International investment and investor confidence are
critical to unlocking the vast mineral resources of Ethiopia – if investors do not feel confidence
in a country, they will go elsewhere. By their recent unlawful
actions, Oromia State officials have severally damaged investor
confidence, and this will likely affect foreign investment flows
into the Ethiopian mining sector for the foreseeable
future.
The Abyssinian Group will protect the interests of
its shareholders by proceeding to international arbitration at
ICSID in order to obtain compensation for the unlawful treatment
and expropriation of our investments in the world-class Kenticha
Lithium Project.”
Background to Dispute
On 10 November 2023,
the Abyssinian Group issued a Notice of Dispute and Request for
Negotiations to the Federal Democratic Republic of Ethiopia under Treaty. The dispute concerns
measures taken against the Abyssinian Group’s investments in the
Kenticha Lithium Project in Oromia State, Ethiopia (the
Dispute).
The same day, the Abyssinian Group issued a Force
Majeure notice to the Ethiopian Federal Ministry of Mines and
Petroleum (Ministry) relating to the Abyssinian Group’s inability
to access the Kenticha Lithium Project site and continue with the
agreed work programme. This notice was issued by the joint venture
company Kenticha Mining PLC (KMP), in which members of the
Abyssinian Group hold a 51% interest, and Oromia Share Mining
Company (OMSC) holds 49%. OMSC is a State-owned enterprise of
Oromia State.
The Abyssinian Group’s rights over the Kenticha
Lithium Project are held by KMP, through an exploration license
agreement with the Ministry (dated January
2023), an exploration license issued by the Ministry, and a
mining license issued by the Ministry over the historical tailings
area at the Kenticha Lithium Project site (together, the Licenses).
Through the work and investment of the Abyssinian Group, a
JORC compliant resource of 85.6Mt at 0.98% lithium oxide (Open pit)
+ ~50Mt exploration target (at similar grades) has been
identified.
The Abyssinian Group has been working to establish a
large, international standard mining operation at Kenticha, which
was scheduled to commence production of spodumene concentrate
(SC5.5%) in Q4 2024.
The Abyssinian Group’s investments in the Kenticha
Lithium Project are protected by the Treaty. The Treaty includes
standard protections for covered investments, including a guarantee
of fair and equitable treatment, full protection and security, and
non-impairment of investments by unreasonable and discriminatory
measures. The Treaty also prohibits the unlawful expropriation of
covered investments. The Treaty provides that, in the event of a
dispute between a covered investor (in this case, the relevant
members of the Abyssinian Group) and the host state (in this case,
Ethiopia), the investor and the
host state is required to attempt to resolve the dispute through
amicable negotiations for a period of six months. If the dispute is
not amicably resolved in this way, the Treaty provides for the
dispute to be resolved by international arbitration outside of the
host state.
This announcement contains inside information for the
purposes of the UK Market Abuse Regulation and the
Directors of the Company accept responsibility for the contents of
this announcement.
ENDS
Enquiries:
Medcaw Investments
Plc
Charlie
Wood
+44 (0)203 918 8797
Abyssinian Metals
Limited
Via Tavistock Communications +44
(0) 207 920 3150
For more information please visit:
https://medcaw-invest.com/
Note:
Certain statements made in this announcement are
forward-looking statements. These forward-looking statements are
not historical facts but rather are based on the Company's current
expectations, estimates, and projections about its industry; its
beliefs; and assumptions. Words such as 'anticipates,' 'expects,'
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements.
These statements are not a guarantee of future performance and are
subject to known and unknown risks, uncertainties, and other
factors, some of which are beyond the Company's control, are
difficult to predict, and could cause actual results to differ
materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders
and prospective security holders not to place undue reliance on
these forward-looking statements, which reflect the view of the
Company only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to
events as of the date on which the statements are made. The Company
will not undertake any obligation to release publicly any revisions
or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of
this announcement except as required by law or by any appropriate
regulatory authority.
