11th Feb 2019 10:02
LONDON (Alliance News) - Pathfinder Minerals PLC on Monday said it has entered into a consultancy agreement with Africa Focus Group Ltd for a potential acquisition in Mozambique.
Shares in the natural resources company were up 11% at 1.34 pence on Monday.
Under the consultancy agreement to the end of September, Africa Focus Group will provide Pathfinder with assistance in completing a transaction with the owners of Pathfinder Mocambique SA, after which Pathfinder will gain control of Mining Concession 4623C.
Pathfinder Mocambique has no affiliation with Pathfinder Minerals or any of its affiliates.
Africa Focus will be paid a fee of GBP1.0 million in cash, conditional on if Pathfinder Minerals raises enough funds to pay the fee in full. The consultancy group can use the fee to subscribe for new shares in Pathfinder, up to 9% of the company's entire issued share capital.
"We are very pleased to have formalised our relationship with AFG with whom we have been working successfully for a number of months. I feel confident that we can move forward with them to the successful conclusion of the good faith negotiations that are progressing in Mozambique. The possibility of AFG taking an equity interest in the company in future, we believe, would align their interests with those of our shareholders," Chief Executive Scott Richardson Brown.
Related Shares:
PFP.L