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by Mike Caswell

Zijin Mining Group Co. Ltd. has filed a lawsuit in the Supreme Court of British Columbia against a former employee, Hao Shen, claiming that he defrauded the company of hundreds of thousands of dollars. Zijin says that Mr. Shen used a company credit card for purchases at Louis Vuitton, BMW, Mercedes-Benz, a private social club and others. He also siphoned $400,000 (U.S.) out of the company through a phoney consulting agreement, Zijin claims.

The allegations are contained in a notice of claim that Zijin filed at the Vancouver courthouse on Tuesday, May 14. The sole defendant is Mr. Shen (also known as Leslie Shen), a Burnaby accountant who helped wind up the operations of Canadian companies that Zijin had acquired. He took on roles as the officer or director of these companies, and held a senior position with Zijin, the suit states.

The events at issue arise from Zijin's acquisition of Nevsun Resources Ltd. in 2019. The deal saw Zijin pay $6 per share, or $1.86-billion, beating out Lundin Mining Corp., which had offered $4.75 per share. Both sides were after Nevsun's Timok copper-gold project in Serbia.

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