MetalNRG launches enforcement proceedings against BritEnergy and BritNRG alleging underpayment following court ruling
MetalNRG shares have plummeted by around 71% since the start of the year
The London-based company initially launched legal action back in January
Its principal investments include the Gold Ridge project in Arizona, USA
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Natural resources investor MetalNRG has begun enforcement proceedings against two associated firms, alleging they failed to pay them the money they were owed.
The London-based company initially launched legal action against BritEnergy, and its chief executive, Pierpaolo Rocco, back in January regarding its holding in the BritNRG joint venture.
MetalNRG had intended to boost its stake in the venture, which buys up oil and gas assets across the UK, to 50 per cent last year, and made a series of payments worth just over £1million to BritEnergy.
MetalNRG initially launched legal action against BritEnergy Holdings LLP and its chief executive, Pierpaolo Rocco, back in January over a matter regarding its holding in the BritNRG joint venture
But following the discovery that Mr Rocco had failed to declare a significant stake he owned in BritEnergy, the business revoked the deal given its lack of investor approval and sought legal redress.
Near the end of September, a summary judgement came down in the firm’s favour that required the joint venture and LLP to reimburse MetalNRG, plus interest and costs, and rejected their leave to appeal and stay of execution.
The two parties then had until 4pm on 26 October to pay £1.2million to MetalNRG but only handed over around £250,000 before that deadline passed. Another sum totalling more than £306,000 has been subsequently paid.
MetalNRG told investors on Monday that BritEnergy and BritNRG had written to its solicitors ‘purporting to have paid the balance that they consider due to the company pending an appeal of part of the judgement’.
It added that the group was ‘seemingly awarding themselves a unilateral stay of execution despite such a stay being applied for at the hearing and refused by the Court, and a further stay application pending before the Court of Appeal.’
It added: ‘Clearly such action in is direct contravention of the order made by the High Court and the company has accordingly commenced enforcement proceedings against the Defendants by the issue and service of statutory demands for the balance due.’
MetalNRG shares were 6.9 per cent lower at 0.07p during the late afternoon on Monday, meaning their value has tumbled by around 71 per cent since the start of the year.
Based in London, the business holds five principal investments, ranging from a uranium deposit in Kyrgyzstan to a gold mining project in Lake Victoria, Tanzania, and the Gold Ridge project in Arizona, USA.
In its most recent financial results covering the first six months of 2022, the group posted a loss of £1million, of which around £630,000 was related to legal and professional fees spent on the BritNRG case.
That period also saw the company forge a new partnership agreement with EQTEC, a clean technology provider, with an aim to recommission a 1MW biomass-to-energy plant in Italy.
When operational, this plant will convert straw and forestry wood waste originating from local forests and farms into green electricity and heat.