BVI Court Grants Gerald Group Ownership of Soremi Mine in Landmark Ruling Against CNG

BVI Court Grants Gerald Group Ownership of Soremi Mine

On July 16, 2025, the British Virgin Islands (BVI) Court delivered a crucial verdict in a drawn-out legal battle that has broad implications across multiple jurisdictions. The ruling recognizes the Gerald Group's subsidiary, Global Mining Development L.P. (“Global”), as the legitimate owner of Soremi Investment Limited (“SIL”), which owns the Soremi Mine. This verdict concluded a protracted conflict between Global and the China National Gold Hong Kong Limited (“CNG”), a subsidiary of a state-owned Chinese enterprise.

Overview of the Legal Battle

The dispute traces back to 2013 when Global initially owned 100% of SIL. Subsequently, Global sold 65% of its shares to CNG. In March 2020, CNG attempted to sell its 65% stake and offered Global a Right of First Refusal (RoFR) to buy back its shares. Global exercised this right, leading to a binding agreement for the transfer of shares. However, CNG failed to transfer the shares, prompting Global to initiate arbitration proceedings in the Hong Kong International Arbitration Court (“HKIAC”) in 2020.

After an extensive hearing, the HKIAC issued two awards in 2023 affirming that Global had effectively exercised its RoFR, declaring them a 100% valid owner of SIL. CNG was thus mandated to transfer the shares back to Global.

Not content with the arbitration's outcomes, CNG embarked on a multi-jurisdictional campaign to obstruct and delay the enforcement of the arbitral awards. As a protective measure, Global secured a preliminary injunction from the BVI Court in March 2024, which required CNG to comprehensively disclose its assets and to return $100 million worth of SIL assets that it had unlawfully moved to bank accounts in China.

Key Court Findings

The BVI Court findings from the July 16 ruling were threefold:
1. The court ordered that SIL's share register be amended to reflect Global as the 100% stakeholder of Soremi Mine.
2. It was determined that CNG had disregarded the BVI Court's directives to disclose its assets and return over $100 million of SIL’s assets.
3. The court mandated that CNG pay a record fine of $2.5 million for contempt of court.

This ruling emphasizes the court's zero-tolerance policy towards non-compliance and illustrates the consequences of defying legal orders.

Future Steps for Gerald Group

With the court’s definitive ruling and backing from the Gerald Group, Global is positioned to regain full control over SIL and the Soremi Mine. The company is eager to leverage this opportunity to capitalize on the mine's potential and drive its success forward, signaling a new chapter post-litigation. The Soremi Mine, known for its polymetallic reserves including copper, lead, and zinc, stands central to Global’s operational strategy in the Republic of Congo.

Company Background

Founded in 1962, the Gerald Group is a leading commodities trader focusing on non-ferrous, iron, and precious metals, including critical minerals. The company operates through a global network comprising trading offices in Stamford, Geneva, Shanghai, and Dubai, and boasts a wide-reaching infrastructure via subsidiaries and strategic alliances. Under Craig Dean's leadership as Executive Chairman and CEO, Gerald Group has positioned itself as a major player within the African iron ore landscape, particularly noted for its Marampa Mines.

This ruling serves as a testament to the importance of compliance in international business operations and the lengths to which companies may go—legally—to protect and assert their ownership rights within complex, multifaceted disputes.