Last checked at 21 Feb 2018 07:00
21 February 2018
Pathfinder Minerals Plc
("Pathfinder Minerals" or the "Company")
Company Update
Pathfinder Minerals provides the following update on the process to recover control of the areas previously licensed to the Company in Mozambique under mining concessions 760C and 4623C (the "Licences").
By way of background, in 2011 General Jacinto Veloso procured, through Mozambique's Ministry of Mineral Resources, the transfer of the Licences to an unconnected entity with the name Pathfinder Moçambique. The transfer took place without the knowledge or consent of Pathfinder Minerals, the ultimate owner of the subsidiary to which the Licences were registered. In 2012, Pathfinder Minerals obtained a declaratory judgment against General Veloso and others in the English High Court (the "Judgment") which ruled, contrary to claims made by General Veloso to justify the transfer of the Licences, that Pathfinder had validly acquired its shares in the licence-holding subsidiary.
The Company continues to pursue a dual-track process to recover control of the Licences either through the recognition and enforcement in Mozambique of the Judgment or by way of a negotiated settlement with General Veloso.
The application for recognition by the Mozambique Supreme Court of the Judgment remains pending. Should it be necessary for the Company to rely on the judicial process, the Board is advised that the prospects for recognition of the Judgment in Mozambique are high, based on precedent.
In June 2017, the Company announced that its regional representative is engaged in discussions with General Veloso, and with the Ministry of Mineral Resources, on the Company's behalf (the "Discussions"). In October 2017, the Company announced that it has presented the framework of an agreement that would, if successful, result in the restoration of the Licences to Pathfinder's control.
Since that time, the Company has held, through its representatives, multiple meetings with General Veloso and/or his designated representative. The most recent exchange took place in January 2018. The complexities of the process are compounded by the involvement of multiple parties (which include the Government of Mozambique), the legal backdrop and jurisdictions of the dispute and the unpredictable tactics of counterparties who had previously procured the appropriation of company assets.
Importantly, the Company has presented a roadmap to completion which would be subject to, inter alia, the satisfaction of certain criteria required to facilitate a negotiated settlement, including the provision of funding. The terms attached to a negotiated settlement remain fluid and there is no certainty of a successful outcome.
Nick Trew, Chief Executive Officer, commented:
"While there have been twists and turns, we are optimistic that, subject to the fulfilment of certain criteria, a negotiated settlement is achievable. We should be mindful nonetheless that, absent a negotiated settlement, the Company believes the declaratory judgment from the English High Court in its favour will eventually be recognised in Mozambique."
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 3440 7775
WH Ireland Limited (Nomad and Joint Corporate Broker)
James Joyce or Jessica Cave
Tel. +44 (0)20 7220 1666
Beaufort Securities Limited (Joint Corporate Broker)
Jon Belliss or Elliot Hance
Tel. +44 (0)20 7382 8300
Vigo Communications (Public Relations)
Ben Simons or Kate Rogucheva
Tel. +44 (0)20 7830 9700
Email. pathfinderminerals@vigocomms.com
Notes to Editors:
Pathfinder Minerals Plc is incorporated in England 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.