Natural resource exploration and development company Red Rock Resources has said it anticipates passing a crucial milestone soon in its ongoing legal campaign in the Democratic Republic of Congo (DRC), as a judgment from the Cour de Cassation (Supreme Court) is expected imminently.

The company believes this ruling will bring finality to key issues in its dispute over a contested $20-million sale of copper and cobalt assets near Kolwezi, which it claims occurred without its knowledge or consent.

The Supreme Court decision is anticipated to significantly influence the outcome of a parallel arbitration process, which has been underway since 2022. In January, the arbitrator convened a session with involved parties to encourage a conclusion, either by means of a settlement or an official award.

During these proceedings, the arbitrator expressed that a Supreme Court ruling would provide vital clarity, prompting Red Rock to expedite its court action on the enforceability of its earlier judgments.

These judgments, originally secured in 2022, affirmed Red Rock’s 50.1% stake in the joint venture (JV) and its entitlement to $2.5-million of the $5-million already paid by the third-party buyer, along with $2-million in damages and accrued interest. The ongoing arbitration seeks to confirm Red Rock’s rights to the remaining $15-million of the transaction.

Red Rock maintains that the asset sale was illegitimate and grossly undervalued, allegedly by a factor of ten, prompting the company to initiate judicial proceedings and take further steps to assert and safeguard its position.

“We reiterate the confidence expressed in our announcements this year that the outcome of the litigation and arbitration will be a significant and positive event for the company. Although winding up these matters has been much slower and much more time-consuming than the very speedy process envisaged in January, we do still expect this in the near term.

“We have held back from updating earlier in the expectation that publication of an award would already have been made. The delay does not reflect anything other in our view than the delays that can be attendant on any court administrative process. The management remains focussed on delivery of these results as expeditiously as possible,” Red Rock chairperson Andrew Bell said on June 12.

Beyond the DRC proceedings, Red Rock continues to advance its gold operations. Last week, the company secured duty exemption and customs clearance for gold testing and processing equipment in Burkina Faso.

The equipment has now been relocated to a storage facility as Red Rock prepares for exploration and production at its Boulon licence, a programme expected to begin within two months. The company has also received an approach regarding another Burkina Faso licence, with due diligence currently underway.

In Colombia, Soma Gold has announced intentions to restart its gold production facilities at El Limon by the end of June. Red Rock holds a royalty interest in gold processed at this site.

Red Rock noted that, aside from the DRC and gold sector updates, its other activities have progressed slowly, pending the resolution of its primary legal claim.

A broader strategic review of its gold assets is underway, and the company has signalled it will make a further announcement once it has assessed operational priorities and funding requirements in light of the current developments.