LONDON (Alliance News) - Pathfinder Minerals PLC Wednesday said that permission to appeal against the Mozambique Supreme Court's rejection of a ruling made in England which was set to see former Mozambique State Security Minister General Veloso, and his associates, pay the company's legal costs from an ongoing court case, has been refused.
On December 15, Pathfinder said the Mozambique Supreme Court had ruled in its favour in relation to an ongoing dispute on whether the Court would recognise and enforce a ruling in England that it validly acquired its Mozambique licence-holding subsidiary.
The dispute concerned the status of the shareholding of Pathfinder's wholly owned subsidiary, IM Minerals Ltd, in Companhia Mineira de Naburi SARL.
Pathfinder was pursuing legal action in both England and Mozambique to try to get back assets it says were seized by former Mozambique State Security Minister General Veloso. The assets are the company's only producing assets.
The English ruling said the subsidiary, IM Minerals, validly acquired its 99.99% stake in Companhia Mineira de Naburi and provided the basis for Pathfinder's application to have the English judgements recognised in, and enforced by, the Mozambique Supreme Court and/or to seek compensation for the loss of value.
Pathfinder was asking the Mozambique Supreme Court to recognise the English Court, which ruled that General Jacinto Veloso, Diogo Cavaco and General Veloso's company, JV Consultores Internacaionais Limitada should pay for costs totalling GBP106,000.
The Mozambique Court rejected the initial claim after arguing that the English courts did not have jurisdiction over the dispute as it was inconvenient for the defendant to appear in a court in London.
However, the Mozambique Court did recognise that the dispute was not a valid matter of Mozambique law, but rejected the claims as the company did not specify which court in England or Wales was to have jurisdiction over the case.
In June, Pathfinder announced that it had asked the Mozambique Court for permission to appeal against its rejection.
On Wednesday, Pathfinder said that it is awaiting a full translation of the Supreme Court's response to the company's request but is advised by its lawyers in Mozambique that the Supreme Court has refused the company permission to appeal against its decision.
Shares in Pathfinder closed up 14.2% at 0.200 pence on Wednesday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Pathfinder Minerals (PFP)