27th Sep 2019 13:35
(Alliance News) - Pathfinder Minerals PLC on Friday reported a narrowed interim loss and said it has made progress in retrieving a mining concession in Mozambique.
Shares in Pathfinder were 14% lower at 1.48 pence each in London on Friday morning
In the six months to June 30, the company narrowed its loss to GBP282,000 from GBP392,000 in the first half of 2018.
The company is aiming to regain the 4623C licence in Mozambique, which it lost in 2011 when its mining concessions were consolidated and given to Pathfinder Mocambique SA, which is not affiliated with Pathfinder Minerals.
Pathfinder Minerals said: "On any analysis, the first half of this year has seen the most positive momentum of any reporting period since the loss of the licence in late 2011."
The company, which is chaired by Conservative MP Henry Bellingham, has engaged with consultants Africa Focus Group Ltd to provide assistance as it pursues a transaction to regain the licence.
In April, the firm reported that it agreed the principle of a proposed transaction with Jacinto Veloso, a local politician who "owns 50% of the entity to which the licence is currently registered".
An English High Court judgement in 2012 ruled that the licences belonged to Pathfinder Minerals but this has not yet been recognised by the government of Mozambique.
Pathfinder Minerals added: "There were no material developments in the legal position during the period. The company continues to await a ruling by the Supreme Court in Mozambique in relation to Pathï¬nder's application for recognition of the 2012 English High Court ruling in its favour."
Bellingham said: "While there are still challenges to overcome, the board remains confident that a transaction is achievable which can deliver value to Pathfinder's existing shareholders. Our confidence is underpinned by the continued willingness of both Pathfinder and Veloso to conclude a deal."
By Eric Cunha; [email protected]
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