24th Oct 2019 14:25
(Alliance News) - Pathfinder Minerals PLC on Thursday said it has been exploring its financial and legal position as it looks to regain an interest in the 4623C mining concession in Mozambique.
The company lost the licence in 2011 when mining concessions were consolidated and given to Pathfinder Mocambique SA, which is not affiliated with Pathfinder Minerals.
The natural resources firm said a financial settlement with Pathfinder Mocambique will be the best method of regaining the licence, as it is yet to receive an update on a Mozambique Supreme Court verdict.
Pathfinder Minerals said the settlement will be "facilitated by a technically competent partner with the means to fund both the settlement itself and substantial future development costs associated with the licence".
An English High Court judgement in 2012 ruled that the concession belonged to Pathfinder Minerals but this has not yet been recognised by the government of Mozambique.
Pathfinder said: "A resolution by way of the Mozambique courts remains a possible route. However, Pathfinder continues to await a ruling by the Supreme Court in Mozambique in relation to the company's application for recognition of the 2012 English High Court ruling."
In April, the firm reported it agreed in principle a proposed transaction with Jacinto Veloso, a local politician who owns 50% of Pathfinder Mocambique.
Pathfinder Minerals Chief Executive John Taylor said: "Our recently appointed Non-Executive Director Dennis Edmonds and I have held detailed and positive discussions in South Africa and Mozambique this month.
"It is clear a commercial settlement, resulting in Pathfinder holding a significant minority interest in the licence alongside a partner which has both the commercial and technical capability to fund a transaction and progress the future development of the licence, represents the most realistic prospect of bringing to an end years of litigation and dispute and instead generating meaningful value for shareholders."
Shares in Pathfinder Minerals were 3.6% higher at 1.42 pence each in London on Thursday afternoon.
By Eric Cunha; [email protected]
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