Pathfinder Minerals Plc Company Strategy Update (0330I)
12 April 2022 - 4:00PM
UK Regulatory
TIDMPFP
RNS Number : 0330I
Pathfinder Minerals Plc
12 April 2022
12 April 2022
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Company Strategy Update
Pathfinder provides an update regarding the dispute concerning
mining concession 4623C (the "Licence") in Mozambique and potential
routes to monetise the Company's claim and pursue additional
opportunities.
As previously announced, the Board is discussing strategic
options with institutional litigation funders and other parties,
which now range from conventional litigation funding arrangements,
whereby the legal costs of the claim would be borne by the funder
on a contingency basis, through to a full acquisition of the claim
via a disposal, subject to regulatory and shareholder approvals as
needed, of the Company's wholly owned subsidiary, IM Minerals
Limited ("IMM"), enabling Pathfinder to return, well-funded, to its
core objectives of exploration and mining. In this regard,
Pathfinder is at the early stage of investigating a range of
opportunities within the minerals sector including a graphite
project in Madagascar, a lithium project in Zimbabwe, and a battery
metals project in Malawi.
Given the potential value of the claim, and favourable prospect
of success attributed by legal counsel (as announced by the Company
on 16 December 2020), the Board believes an acquisition of IMM
would be attractive to third parties. Such parties range from
litigation funders who would pursue the claim, through to the
current Licence-holder, TZM Resources SA ("TZM"), to protect its
ownership of the Licence which the Board believes it could lose in
the event of a successful claim.
Bilateral Investment Treaty
Pathfinder has recently notified the Minister of Mineral
Resources and Energy of Mozambique of the Mozambique Government's
failure to resolve the dispute and of the steps Pathfinder is
taking in preparation for the claim to be referred to the
International Centre for Settlement of Investment Disputes
("ICSID") under the Bilateral Investment Treaty (the "Treaty").
Despite the inclusion of TZM in efforts to seek alternative
solutions , no offer has been put forward to Pathfinder by TZM. It
appears TZM is proceeding with project development, leaving the
Government of Mozambique exposed to a potential claim.
As announced on 10 December 2021, the Company's preparatory work
includes the development of a detailed budget and timeline for
claimant costs, the identification of a litigation team, and
independent professional analysis of valuations for differing
successful outcomes at an ICSID tribunal, ranging from a minimum of
US$110m for an ex-ante damages award through to US$1,500m for an
ex-post damages award.
The claim is being further developed to include asset tracing
reports and enforcement strategies. This includes the Republic of
Mozambique's foreign and domestic assets, which may include, inter
alia, exported hydrocarbons such as those produced from the Rovuma
LNG project.
Peter Taylor, Chief Executive Officer of Pathfinder,
commented:
"Having done the considerable groundwork to prepare to launch a
claim against Mozambique, we are now able to consider options to
pursue or monetise the claim.
Given the areas now referred to as the Licence were
independently assessed in 2010 to have a market value of between
US$107.6m and US$179.3m - prior to the Moebase portion of the
Licence being upgraded to Mining Concession status - we believe the
current Licence-holder, TZM, has a significant vested interest in
protecting its investment in the Licence. The window of opportunity
for TZM to act is closing as the Company may dispose of IMM to a
third party whose sole objective is to pursue the valuable claim
under the Treaty.
Whether the Company pursues a claim itself or disposes of IMM,
the Board intends to pursue other opportunities within the minerals
sector which are under detailed review."
Enquiries:
Pathfinder Minerals Plc
Peter Taylor, Chief Executive Officer
Tel. +44 +44 (0)20 3143 6748
Strand Hanson Limited (Nominated & Financial Adviser and
Broker)
James Spinney / Ritchie Balmer / Rob Patrick
Tel. +44 (0)20 7409 3494
Vigo Consulting (Public Relations)
Ben Simons / Charlie Neish / Kate Kilgallen
Tel. +44 (0)20 7390 0234
Email pathfinderminerals@vigoconsulting.com
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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