(Alliance News) - Pathfinder Minerals PLC on Friday said it is making progress in restoring its interest in Mozambique mining concession 4623C and is assessing a further two independent opportunities.
Shares in Pathfinder were down 17% at 0.93 pence in London shortly before midday.
The company lost the 4623C licence in 2011 when mining concessions were consolidated and given to unaffiliated firm Pathfinder Mocambique SA.
In October, Pathfinder said it had attended a number of meetings in South Africa and Mozambique in order to resolve issues with the licence. It has since held another two rounds of meetings and plans further meetings later in the month.
Further talks with Pathfinder Mocambique shareholders to reach "a mutually acceptable settlement" are continuing, facilitated by Africa Focus Group. Pathfinder's agreement with Africa Focus Group has been extended for another three months on a non-exclusive basis, having previously been extended to the end of 2019.
While Pathfinder said it "remains confident" in achieving a resolution, it added that it cannot be certain such a resolution will be quick or that it will satisfy all shareholders.
Given this, Pathfinder is also looking into "other appropriate commercial opportunities" and is assessing two independent opportunities in particular. In both cases, due diligence on their suitability is "at an advanced stage". Any deal would likely need shareholder approval.
John Taylor, Pathfinder's chief executive, said: "I continue to be encouraged by the progress made since our last update which reflects the considerable efforts of my fellow directors in relentlessly pursuing a successful outcome to the recovery of an interest in the licence. In addition, I believe the strategic decision to also explore wider commercial interests is the correct course of action to take.
"The board's focus remains firmly on a successful resolution of the long-running dispute over the licence and consideration of wider opportunities will not detract from that priority. I look forward to updating shareholders on further progress across a number of fronts."
By Anna Farley; annafarley@alliancenews.com
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Pathfinder Minerals (PFP)