Last checked at 16 Mar 2016 07:00
Embargoed: 0700hrs 16 March 2016
Pathfinder Minerals Plc
("Pathfinder" or "the Company")
Company Update
Pathfinder provides a further update below on the Company's position and steps to recover mining licences 760C and 4623C (the "Licences").
Legal proceedings in Mozambique
As previously announced on 2 March 2016, Pathfinder continues to await information from the Mozambique Courts on pending judgments and, while the directors remain confident of their outcome, the Company has no visibility on the timing of such judgments. Pathfinder will continue to update shareholders whenever it is notified of any material developments in the legal proceedings.
Other routes to recover the Licences
As previously announced, the Company is not relying solely on the Mozambique Courts to recover the Licences; Pathfinder continues to pursue other possible routes to achieve a faster resolution. As such, the Company is in discussions to appoint a potential new local representative in Maputo to assist Pathfinder in its dialogue with the Mozambique Government. No formal agreement with the prospective local representative has yet been signed however, in the event that such an appointment is made, it is expected that the Company would issue up to 25 per cent of its share capital to the local representative should the Licences be successfully restored to the Company's control.
Funding discussions
The Company continues to hold discussions with regards to the raising of a small amount of additional working capital in order to help it address its financial situation. It is currently envisaged that such working capital will be provided by way of a subscription, which will include a director of the Company and would accordingly constitute a related party transaction under the AIM Rules for Companies. A further announcement will be made in due course.
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 3440 7775
WH Ireland Limited (Nomad and Broker)
Paul Shackleton or Mark Leonard
Tel. +44 (0)20 7220 1666
Vigo Communications
Ben Simons or Ali Roper
Tel. +44 (0)20 7830 9704
Email. pathfinderminerals@vigocomms.com
Notes to Editors:
Pathfinder Minerals Plc is incorporated in England & Wales and is admitted to trading on the AIM market of the London Stock Exchange.
CMdN, a subsidiary of Pathfinder, was issued mining concession licences 760C and 4623C on 13 September 2004 and 13 July 2011 respectively, each for a period of twenty-five years. Taken together, these mining concessions cover approximately 32,000 hectares of land on the Indian Ocean coast of the Zambezia province of Mozambique, known to contain the heavy minerals, ilmenite, rutile and zircon.
As announced on 3 February 2012, ownership of these licences is being disputed.