Ascent Resources PLC on Monday said its joint venture partner Geoenergo doo has started insolvency proceedings in Slovenia, following an arbitration tribunal.

Shares in Ascent Resources closed down 21% to 3.02 pence each in London on Monday.

Ascent Resources is a mineral exploration and development company with gold mining interests in Turkey, Cyprus and Kosovo, while Geoenergo is Ascent Slovenia Ltd’s joint venture partner, of which Ascent Slovenia has an ongoing arbitration tribunal against.

In late October, Ascent Resources received a positive arbitration tribunal binding interim decision, confirming Ascent Slovenia’s entitlement to proceeds above the baseline production profile from all wells in the concession area.

In response, Ascent Resources said it is now working with its Slovenian lawyers ‘across multiple fronts’. This includes challenging the proposal for Geoenergo to enter into self-declared insolvency; registering Ascent Slovenia’s significant creditor position with the courts; working to protect the status of the concession where possible; and potentially filing civil claims and initiating criminal charges against the directors and shareholders of Geoenergo.

Ascent Resources said it expects an administrator for Geoenergo to be appointed shortly.

Ascent Resources said it will be asking to investigate where the hydrocarbon revenues are, as these have been historically received by Geoenergo and claimed by Ascent Slovenia for ‘some time’ and which now, following the arbitration outcome, are ‘indisputably owed’ to Ascent Slovenia.

Ascent Slovenia will collaborate with the necessary authorities to ‘evaluate any potential misappropriation of those revenues’, Ascent Resources said.

Ascent Resources said further announcements will be made ‘as necessary’.

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