BSGR Not Connected to Canadile Sides Say

(IDEX Online News) - “The Beny Steinmetz Group Resources (BSGR) company has no part or connection to our company,” a director in the company told IDEX Online. The statement follows charges in Zimbabwe against directors of Canadile that have allegedly misrepresented the ownership of one of the joint venture partners, Core Mining and Minerals.

Six diamond executives, including Lovemore Kurotwi of Canadile, were arrested in Zimbabwe for allegedly falsely claiming the connection with BSGR to obtain a diamond mining license. The six are denying the charges.

According to the government officials, Core Mining and Minerals was selected as preferred partner from a large group of applicants because of its standing and financial acumen. It had been claimed by Core Mining and Minerals that some $2 billion of investments would be forthcoming.

Yehuda Licht, a director of Canadile told IDEX Online that BSGR is not connected to Canadile in anyway. “They are just using that [as an excuse] to cancel the contract. BSGR is not connected in any way. The people that signed the agreement with us know that.”

BSGR stated that, “two months ago, BSGR made its non-involvement in Canadile Miners and any of its shareholders unequivocally clear to the Zimbabwe Government and will, of course, cooperate with any investigation if requested to do so. It will also reserve its legal rights against anyone who deliberately seeks to damage or undermine its reputation. BSGR regrets that its name has arisen in the context of litigation in Zimbabwe, and it is issuing this statement to preserve its excellent standing globally.”

According to Harare sources, the government will transfer the ownership of Canadile’s concession to more experienced and financially strong parties.