Last checked at 3 Jan 2020 11:20
3 January 2020
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Corporate Update
Pathfinder (AIM: PFP) is pleased to provide an update on its progress towards restoring an interest in Mining Concession 4623C in Mozambique (the "Licence") and on other (unconnected) commercial opportunities that have been presented to the Board of Directors of Pathfinder (the "Board") to assess.
As announced on 24 October 2019, a period of meetings took place in both South Africa and Mozambique in that month between members of the Board, its representatives and various key stakeholders involved in the process of working to secure a resolution of the issues surrounding the Company's previous interest in the Licence. Since then, two further rounds of meetings have been undertaken by Board representatives in Mozambique and South Africa to intensify the progress and further meetings are planned for this month.
A number of additional meetings have been conducted with the preferred funding partner which, as announced on 24 October 2019, is both technically competent and has the means to fund both a settlement itself and future development costs associated with the Licence. The party is continuing with its due diligence process. In addition, further dialogue has been conducted with the shareholders of Pathfinder Moçambique S.A. (the current Licence holder) with a view to concluding a mutually acceptable settlement in respect of the Licence. These discussions continue in good faith and have been facilitated by Africa Focus Group ("AFG") at every stage.
The Company announced on 24 October 2019 that the agreement with AFG was extended until 31 December 2019 and, given the ongoing progress that continues to be made with all parties, the Board has determined it in the interests of the Company to extend this agreement for a further three months on a non-exclusive basis. This allows the Board to explore other funding avenues unilaterally and to pursue other commercial opportunities where there is a clear synergy with the Board's expertise and the Company's natural resource focus. All other terms of the agreement with AFG remain the same.
As previously stated, while the Board remains confident of a successful resolution of the dispute surrounding the Licence, there is no certainty that this can be achieved to the satisfaction of all stakeholders within a timely manner. As such, the Board believes that it is in the interests of the Company also to assess other appropriate commercial opportunities. Accordingly, the Board is actively assessing two independent opportunities, with due diligence on their suitability for Pathfinder now at an advanced stage. The key consideration in any decision-making is whether a broadening of interests beyond the Licence will assist the Board in recovering shareholder value and generating future additional value through cash generation that would alleviate the pressure for future, potentially dilutive, funding requirements associated with Pathfinder's prospective interest in the Licence. It is highly likely that any decision to be taken by the Board in respect of restoring an interest in the Licence and/or pursuing other such opportunities would require the approval of shareholders by way of a General Meeting.
John Taylor, Chief Executive Officer of Pathfinder, commented:
"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."
Enquiries:
Pathfinder Minerals Plc
John Taylor, Chief Executive Officer
Tel. +44 (0)20 3440 7775
Strand Hanson Limited (Nominated & Financial Adviser and Broker)
James Spinney / Ritchie Balmer / Jack Botros
Tel. +44 (0)20 7409 3494
Vigo Communications (Public Relations)
Ben Simons / Simon Woods
Tel. +44 (0)20 7390 0234
Email. pathfinderminerals@vigocomms.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").