Ex-director of MetalNRG stands down legal claims against firm

A former executive of London-listed MetalNRG has withdrawn his lawsuit against the natural resources investment firm.

Pierpaolo Rocco has filed a claim against the company and three of its current directors, including chairman Christopher Latilla-Campbell and current CEO Rolf Gerritsen, alleging “unfair prejudice” against him.

He alleged that the company terminated certain transactions on an inaccurate and misleading basis, while management overpaid Gerritsen.

MetalNRG and its directors, including non-executive director and executive chairman of Eurasia Mining, Christian Schaffalitzky De Muckadel, sought to have Rocco’s petition dropped.

They argued that there were “no reasonable grounds” for bringing the case, no chance of success and no reason to go to trial.

On Dec. 23, just before the deadline for submitting evidence to support his application, Mr. Rocco ended his claim and entered into a consent order with MetalNRG and its leadership, the group said.

Under this agreement, Rocco has agreed to bear the £20,000 costs of the London-based company and its directors, but could be held liable for more, subject to a court decision.

Today’s announcement comes about two weeks after a judge rejected demands from BritEnergy, of which Rocco is CEO, and joint venture BritNRG for permission to appeal against a preliminary injunction that was awarded to MetalNRG in September.

The two defendants then had one week to renew the application for permission to appeal against the verdict or MetalNRG would be entitled to receive £545,000 in damages.

An update has yet to be given on whether the application has been submitted and whether any funds have been exchanged.

MetalNRG initially initiated legal action against Rocco and his company in January amid a dispute over its equity interest in oil and gas joint venture BritNRG.

To increase its stake in BritNRG, the company made payments of just over £1 million, but withdrew the deal after learning that Rocco had failed to declare a major stake in the company.

In September, the two entities were ordered to pay back MetalNRG, plus interest and costs, and denied permission to appeal and a stay of execution.

They had until the afternoon of 26 October to pay £1.2 million in costs, but only handed over about £250,000 before the deadline passed.

MetalNRG has five major investments ranging from a gold mine project in Lake Victoria, Tanzania, a uranium deposit in Kyrgyzstan, and the Gold Ridge project near Tucson, Arizona.

In its most recent financial results for the first six months of 2022, the group posted a loss of £1 million, of which approximately £630,000 related to legal and professional costs spent on the BritNRG case.