10th Dec 2021 10:41
Pathfinder Minerals PLC - Mozambique-focused natural resources explorer - Shares shoot up 30% on Friday as it prepares for its impending legal dispute claim with the government of Mozambique. Pathfinder says it has "significantly advanced" its preparation to refer the dispute to the International Centre for Settlement of Investment Disputes. Preparatory work includes the development of a detailed budget and timeline for claimant costs, the identification of the company's litigation team, and independent professional analysis of valuations for differing successful outcomes at an ICSID tribunal. The legal claim against Mozambican government relates to the loss of a licence in 2011.
The company's solicitors have assessed a range of successful scenarios with valuations ranging from a minimum of USD110 million for an ex-ante damages award through to USD1.50 billion for an ex-post damages award. The valuation supports the USD621.3 million of estimated losses first stated by Pathfinder.
"With independent professional analysis supporting a range of high value award scenarios, and legal counsel attributing a favourable prospect of establishing liability on the part of the government of Mozambique, a claim under the treaty is now a very likely course of action. While this was never our preferred path, and we remain open to alternative solutions with the current Licence-holder, we believe we have strong prospects of recovering very significant monetary damages through this process," comments Chief Executive Peter Taylor.
Current stock price: 0.72 pence, up 30% Friday
Year-to-date change: up 43%
By Will Paige; [email protected]
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