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Pin to quick picksPathfinder Minerals Regulatory News (PFP)

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Company Strategy Update

12 Apr 2022 07:00

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").

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
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Date   Source Headline
27th Feb 20247:00 amRNSUpdate on Rome Resources
29th Jan 202410:21 amRNSAmendment to the revised IM Minerals SPA
2nd Jan 202410:00 amRNSHolding(s) in Company
29th Dec 20231:00 pmRNSTotal Voting Rights
22nd Dec 20239:56 amRNSSubscription to raise £1.275 million and TVR
21st Dec 20235:05 pmRNSResult of General Meeting
4th Dec 20237:00 amRNSNotice of GM
29th Nov 20237:30 amRNSSuspension - Pathfinder Minerals PLC
29th Nov 20237:00 amRNSProposed Acquisition, Subscription & Suspension
3rd Nov 202312:56 pmRNSHolding in Company
26th Sep 20237:00 amRNSHalf-Year Results
1st Sep 20237:00 amRNSProposed Bonus Shares Timetable
18th Aug 20231:42 pmRNSResult of GM & Completion of Disposal
16th Aug 20237:00 amRNSBoard Changes & Proposed Issue of Bonus Shares
31st Jul 20237:00 amRNSNotice of GM
28th Jul 20234:14 pmRNSEntry into revised SPA for sale of IM Minerals
26th Jul 20237:00 amRNSChange of Nominated Adviser and Broker
4th Jul 20234:07 pmRNSHolding(s) in Company
23rd Jun 20237:00 amRNSResult of AGM and Board Changes
19th Jun 20235:04 pmRNSHolding(s) in Company
14th Jun 20234:27 pmRNSUpdate re Sale of IM Minerals
30th May 20233:14 pmRNSUpdate re Sale of IM Minerals
25th May 20237:01 amRNSNotice of AGM
25th May 20237:00 amRNSFinal Results
22nd May 20237:00 amRNSUpdate re Sale of IM Minerals
11th May 20235:00 pmRNSUpdate re Sale of IM Minerals: Result of Meeting
28th Apr 20237:25 amRNSAmendment to Share Option Terms
21st Apr 20237:00 amRNSRevised SPA, Posting of Circular and Notice of GM
12th Apr 20237:00 amRNSUpdate re Sale of IM Minerals
22nd Mar 20232:05 pmRNSSecond Price Monitoring Extn
22nd Mar 20232:00 pmRNSPrice Monitoring Extension
22nd Mar 20237:00 amRNSSPA Signed for Sale of IM Minerals
22nd Feb 20237:00 amRNSUpdate re Sale of IM Minerals
2nd Feb 202311:14 amRNSHolding(s) in Company
1st Feb 20237:01 amRNSUpdate re Bilateral Investment Treaty Claim
1st Feb 20237:00 amRNSPlacing Completion and Total Voting Rights
27th Jan 20235:12 pmRNSResult of General Meeting
9th Jan 20237:00 amRNSNotice of GM
4th Jan 20237:00 amRNSUpdate re Bilateral Investment Treaty Claim
3rd Jan 20237:00 amRNSConditional Placing to Raise £0.5 Million
28th Dec 20223:44 pmRNSUpdate re Loan Agreement
8th Nov 20225:26 pmRNSHolding(s) in Company
30th Sep 20227:00 amRNSHalf-year Results
29th Sep 20227:02 amRNSLoan Agreement
29th Sep 20227:00 amRNSUpdate re Bilateral Investment Treaty Claim
30th Jun 20224:14 pmRNSResult of Annual General Meeting
17th Jun 20224:58 pmRNSNotice of AGM Explanatory Notes
6th Jun 20223:52 pmRNSNotice of AGM
6th Jun 20223:50 pmRNSFinal Results for the Year Ended 31 December 2021
6th May 20223:19 pmRNSExtension of Certain Share Options and Warrants

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