28th Jun 2016 13:12
LONDON (Alliance News) - Pathfinder Minerals PLC on Tuesday said that the process to regain control of its mining licences in Mozambique is ongoing and that it believes its ongoing dialogue with the Mozambique government will deliver a positive resolution.
Pathfinder allowed there could be no certainty of a successful outcome. It said at the same time it is continuing to pursue its legal strategy vigorously in the event that it should need to rely on this to resolve matters or to provide compensation for the company's loss.
Pathfinder has been embroiled in a cross-border court case for years that has resulted in different rulings from the Mozambique Supreme Court and the English High Court over the ownership of a company called Companhia Mineira de Naburi SARL, which held all of Pathfinder's producing assets.
Pathfinder launched legal action in both England and Mozambique against General Jacinto Soares Veloso and his company JV Consultores Internacionais Limitada, alongside Veloso's associate Diogo Cavaco.
The dispute concerns the status of the shareholding of Pathfinder's wholly owned subsidiary, IM Minerals Ltd, in Companhia Mineira de Naburi. Pathfinder had been pursuing legal action in both nations to try to get back assets it claims were seized by former Mozambique State Security Minister General Veloso. Veloso, however, has said Pathfinder never owned the assets.
For 2015, Pathfinder reported a pretax loss of GBP1.09 million, widened slightly from GBP1.06 million. It did not produce revenue in either period.
Pathfinder said that it has taken a number of actions to reduce its overhead so it has sufficient cash to see it through the recovery of its assets.
"We have in recent months made a good deal of progress and, while any talks with the Mozambique government are sensitive in nature, I am heartened by the apparent understanding of the events which have occurred now being demonstrated by senior members within the government and I am optimistic that, while there can be no certainty of a successful outcome, we are on the right track to a resolution," said Chairman Henry Bellingham in a statement.
Shares in Pathfinder were down 0.8% at 0.769 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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