Pathfinder Minerals Plc Company Update (4582F)
21 February 2018 - 6:00PM
UK Regulatory
TIDMPFP
RNS Number : 4582F
Pathfinder Minerals Plc
21 February 2018
21 February 2018
Pathfinder Minerals Plc
("Pathfinder Minerals" or the "Company")
Company Update
Pathfinder Minerals provides the following update on the process
to recover control of the areas previously licensed to the Company
in Mozambique under mining concessions 760C and 4623C (the
"Licences").
By way of background, in 2011 General Jacinto Veloso procured,
through Mozambique's Ministry of Mineral Resources, the transfer of
the Licences to an unconnected entity with the name Pathfinder
Moçambique. The transfer took place without the knowledge or
consent of Pathfinder Minerals, the ultimate owner of the
subsidiary to which the Licences were registered. In 2012,
Pathfinder Minerals obtained a declaratory judgment against General
Veloso and others in the English High Court (the "Judgment") which
ruled, contrary to claims made by General Veloso to justify the
transfer of the Licences, that Pathfinder had validly acquired its
shares in the licence-holding subsidiary.
The Company continues to pursue a dual-track process to recover
control of the Licences either through the recognition and
enforcement in Mozambique of the Judgment or by way of a negotiated
settlement with General Veloso.
The application for recognition by the Mozambique Supreme Court
of the Judgment remains pending. Should it be necessary for the
Company to rely on the judicial process, the Board is advised that
the prospects for recognition of the Judgment in Mozambique are
high, based on precedent.
In June 2017, the Company announced that its regional
representative is engaged in discussions with General Veloso, and
with the Ministry of Mineral Resources, on the Company's behalf
(the "Discussions"). In October 2017, the Company announced that it
has presented the framework of an agreement that would, if
successful, result in the restoration of the Licences to
Pathfinder's control.
Since that time, the Company has held, through its
representatives, multiple meetings with General Veloso and/or his
designated representative. The most recent exchange took place in
January 2018. The complexities of the process are compounded by the
involvement of multiple parties (which include the Government of
Mozambique), the legal backdrop and jurisdictions of the dispute
and the unpredictable tactics of counterparties who had previously
procured the appropriation of company assets.
Importantly, the Company has presented a roadmap to completion
which would be subject to, inter alia, the satisfaction of certain
criteria required to facilitate a negotiated settlement, including
the provision of funding. The terms attached to a negotiated
settlement remain fluid and there is no certainty of a successful
outcome.
Nick Trew, Chief Executive Officer, commented:
"While there have been twists and turns, we are optimistic that,
subject to the fulfilment of certain criteria, a negotiated
settlement is achievable. We should be mindful nonetheless that,
absent a negotiated settlement, the Company believes the
declaratory judgment from the English High Court in its favour will
eventually be recognised in Mozambique."
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 3440 7775
WH Ireland Limited (Nomad and Joint Corporate Broker)
James Joyce or Jessica Cave
Tel. +44 (0)20 7220 1666
Beaufort Securities Limited (Joint Corporate Broker)
Jon Belliss or Elliot Hance
Tel. +44 (0)20 7382 8300
Vigo Communications (Public Relations)
Ben Simons or Kate Rogucheva
Tel. +44 (0)20 7830 9700
Email. pathfinderminerals@vigocomms.com
Notes to Editors:
Pathfinder Minerals Plc is incorporated in England and is
admitted to trading on the AIM market of the London Stock
Exchange.
CMdN, a subsidiary of Pathfinder, was issued mining concession
licences 760C and 4623C on 13 September 2004 and 13 July 2011
respectively, each for a period of twenty-five years. Taken
together, these mining concessions cover approximately 32,000
hectares of land on the Indian Ocean coast of the Zambezia province
of Mozambique, known to contain the heavy minerals, ilmenite,
rutile and zircon.
As announced on 3 February 2012, ownership of these licences is
being disputed.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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