Two Abuja-based Chinese companies, Lineal Mines Limited and Wang Wang Mining (China) Co. Ltd, along with shareholders Wang Youfeng, Zeng Yusang, Yu Binbin, and Zeng Guodong, face the Federal High Court in Abuja over an alleged contract breach and a fraudulent lithium exploration and mining license.
Lideal Mines Limited’s lawyer, Abraham Abisoye, filed the case under suit number FHC/ABJ/CS/1342/2023. He is seeking N10 billion in general damages for breach of contract, alleging that the defendants falsely represented their possession of an Exploration License and Mining License. According to Abisoye, the defendants told his client they had obtained the required licenses but needed financial assistance for mining operations in a newly approved area covering “approximately 32.3 square kilometres.” They allegedly sought funds ranging from RMB 30 million to RMB 40 million from the plaintiff, designating these funds as investment costs.
“The investment cost loan facility was mutually agreed to span an eight-month period of mining operations,” he said. However, two months into the operation, the plaintiff discovered that the purported Exploration License and Mining License were falsified.
Abisoye stated that after significant investment in equipment, the defendants failed to produce the mining license as promised, breaching Articles 9.1 and 9.2 of their Agreement. Cheng Tao Hong, a plaintiff representative, testified that her company entered an equity-sharing agreement with Wangwang, acquiring a 30% share in lithium materials from the site based on the defendants’ representations.
In court, Abisoye informed Justice Inyang Ekwo that the defendants’ counsel had initially pursued a settlement but later withdrew. The defendants’ frequent changes of counsel delayed the proceedings. Abisoye noted his readiness with two witnesses to support his case. The judge set hearing dates for February 18, 19, and 20, 2025, while keeping the option for settlement open.