Pathfinder Minerals Plc Update re Bilateral Investment Treaty Claim (0575V)
12 April 2021 - 4:00PM
UK Regulatory
TIDMPFP
RNS Number : 0575V
Pathfinder Minerals Plc
12 April 2021
12 April 2021
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Update re Bilateral Investment Treaty Claim
Pathfinder announced on 2 November 2020 that, should the Company
be unable to resolve its dispute with the Government of Mozambique
over the unlawful transfer of Mining Title 4623C to an unconnected
company, the Board would seek recourse to the bilateral investment
treaty signed by the Government of the Republic of Mozambique and
the Government of Great Britain and Northern Ireland (the
"Treaty").
Repeated attempts on behalf of Pathfinder to engage with
Mozambique's Ministry of Mineral Resources and Energy ("MIREME")
regarding the matter, including several requests that MIREME take
certain steps to limit the damage caused to Pathfinder, have been
unsuccessful. Further, it appears that, as a result of, and in
continuance and serious aggravation of, the breaches of the
Government of Mozambique's obligations under the Treaty, further
transfers in relation to the ownership of Mining Title 4623C have
taken place, thereby increasing Pathfinder's exposure to
losses.
Accordingly, Pathfinder's solicitors have now written to
Mozambique's Minister of Mineral Resources and Energy making it
clear that, in the event that Pathfinder refers the matter to the
International Centre for Settlement of Investment Disputes
("ICSID") under the Treaty, the ICSID tribunal would have the power
to order the return of Mining Title 4623C to Pathfinder's control
or to order payment of damages by the Government of Mozambique to
compensate Pathfinder for its loss. Pathfinder estimates its losses
in connection with the diversion of the licensed areas, including
lost profits, to be in excess of US$ 621.3 million. Shareholders
should be aware that there is no guarantee that this, or any,
amount will be recovered, should the Company refer the matter to
the ICSID.
Peter Taylor, Chief Executive Officer of Pathfinder,
commented:
"It appears that MIREME not only failed to limit the risk of a
disposal of Mining Title 4623C but positively facilitated it,
thereby increasing the Company's exposure to losses. Pathfinder
estimates its losses exceed US$ 621.3 million and s hould we
continue to be unable to resolve the matter with the Government of
Mozambique, the Board intends to pursue its valuable claim under
the Treaty, with the support of litigation funders."
Enquiries:
Pathfinder Minerals Plc
Peter Taylor, Chief Executive Officer
Tel. +44 (0)20 3143 6748
Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer / Rob Patrick
Tel. +44 (0)20 7409 3494
Vigo Communications (Public Relations)
Ben Simons / Simon Woods
Tel. +44 (0)20 7390 0234
Email. pathfinderminerals@vigocomms.com
Novum Securities Limited (Corporate Broker)
Colin Rowbury / Jon Belliss
Tel. +44 (0)20 7399 9400
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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END
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