LONDON (Alliance News) - Pathfinder Minerals PLC said Wednesday that the Judicial Court of the City of Maputo had ruled that resolutions made in January by its subsidiary IM Minerals Ltd to remove former Mozambique state security minister General Veloso, his daughter and Diogo Cavaco from the board of its subsidiary Companhia Mineria de Nabura were void.
The company, which is trying to get back assets it says were seized illegally by General Veloso, said the Maputo Court had also ruled that IMM's certificate showing its 99.99% shareholding in CMDN was void.
However, it said IMM had not been party to the proceedings.
"It is apparent that General Veloso has obtained a judgement in proceedings in which he was effectively both claimant and defendant," said Chief Executive Officer Nick Trew in a statement. "Unsurprisingly, he provided no opposition to his own case and, further, failed to present the full facts to the Mozambique court."
Pathfinder is pursuing legal action in both England and Mozambique to try and get back assets it says were seized by General Veloso, although court proceedings are dragging on and there is no sign of any deal, meaning the company is effectively in limbo because it has no other producing assets.
The English High Court has already ruled that Pathfinder is the rightful owner of its shares in Mozambique subsidiary Companhia Mineira de Naburi, and the company is now trying to get the Supreme Court in Mozambique to formally recognize the English court ruling.
In October a court in Mozambique found that the attempt by the former minister of state security to block the company taking legal action in England had been ruled as void.
The company said that it is partaking in other proceedings in the Maputo courts over the validity of its shareholding, and is still awaiting judgements. In the meantime, Wednesday's judgement will have no legal effect on those proceedings.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @hanassallnews
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Pathfinder Minerals (PFP)