
Following a trial in December 2024, the court has handed down judgment in Demissie v. KEFI Gold and Copper plc [2025] EWHC 60 (KB) dismissing Mr Demissie’s claim for a commission in respect of a debt financing arrangement.
The claim arose out of a Consultancy Services Agreement relating to the Tulu Kapi gold mine in Ethiopia pursuant to which Mr Demissie was entitled to a 3 per cent commission in respect of any debt financing raised by him. The agreement came to an end in June 2020, but Mr Demissie contended that he had done enough during the currency of the agreement to earn a commission in respect of the $240m of debt financing which KEFI expects to raise from two banks in the near future.
The court rejected the claim and accepted KEFI’s argument that, on its proper construction, commission was only payable in the event that financial close occurred during the currency of the consultancy agreement. The court also accepted KEFI’s counterclaim requiring Mr Demissie to repay the sum of $205,000 which KEFI had paid to him as an advance on his commission.
KEFI was represented by Edward Levey KC instructed by Jeremy Garson of Herbert Smith Freehills.
A copy of the judgment is available here.