2 hours agoCourt of Appeal clears way for controversial sale of Mupane Mine

The Court of Appeal (CoA) has overturned a High Court ruling that had halted the multi-million-dollar sale of Mupane Gold Mining’s assets, paving the way for the transaction to proceed. The appellate panel, consisting of Judge President Tebogo Tau, Isaac Lesetedi, and Lot Moroka, set aside an interim interdict that had frozen the liquidation process. The court dismissed the legal challenge from rival bidder Ulsan Botswana, describing it as “drawn from the depths of emptiness.” The dispute originated after Mupane Gold Mining was placed under final liquidation in February 2025, following a petition by the Mineworkers’ Union on behalf of employees seeking unpaid wages.

Kopanang Thekiso, the court-appointed liquidator, initiated a bidding process for the mine’s assets, which eventually narrowed to two main contenders: the Nova Africa Resources/Aone Commodities DMCC Joint Venture and Ulsan Botswana. The financial difference between the bids was stark. Nova Africa JV offered an upfront payment of USD 21.5 million, while Ulsan proposed only USD 500,000 upfront, with a conditional offer that could rise to USD 10 million over three years, contingent on further mine assessments.

The liquidator recommended Nova Africa JV’s bid as the more advantageous option for creditors, a recommendation endorsed by a creditors’ meeting in August 2025. In October 2025, however, Ulsan Botswana secured an interim interdict from the High Court, alleging unfairness in the bidding process. Ulsan claimed the liquidator unlawfully extended the bid deadline to favor Nova Africa JV and objected to the formal creditors’ meeting, arguing it should have been informal.

[paywall]

Justice Lesetedi noted that the Request for Offers documents granted the liquidator broad discretionary powers, including the right to negotiate and extend timelines as necessary. The court further ruled that Ulsan, as an unsuccessful bidder, lacked legal standing under the Companies Act to challenge the process, as its bid did not create contractual rights. “Quite evidently, Ulsan was nothing but a grumpy loser with no conceivable right to protect, let alone a prima facie one, but intent on frustrating the liquidation process on the back of whimsical grounds,” the judgment stated.

“In the absence of a prima facie case, the interim interdict application stood to be dismissed. A party without a legal interest to protect cannot claim irreparable harm, in that no legal harm occurs where no legal right is shown.” A critical element of the Court of Appeal’s ruling was the balance of convenience. The judges found that the High Court had failed to sufficiently consider the welfare of former Mupane employees, whose livelihoods depended on the liquidation concluding promptly. The liquidator had warned that the estate’s funds for care and maintenance had been exhausted, meaning any further delay would lead to the deterioration of the mine’s physical assets, ultimately harming creditors.

[/paywall]