Last checked at 21 Dec 2012 12:46
For immediate release: 21 December 2012
Pathfinder Minerals Plc("Pathfinder" or "the Company")
Receipt of claim issued in Commercial Division of Maputo Court
Pathfinder announces that it has received a claim issued in the Commercial Division of the Maputo Court (the "Maputo Claim") against the Company and its wholly owned subsidiary, IM Minerals Limited ("IMM"), by General Veloso, his company JV Consultores Internacionais, Limitada and Diogo Cavaco (the "Maputo Claimants").
The directors of Pathfinder consider the Maputo Claim to be spurious and misguided, not least because the core issues raised in the claim have already been determined in the Company's favour by the English High Court, as previously announced.
The Maputo Claimants are persisting in their allegation that IMM never acquired any shares in its Mozambique subsidiary, Companhia Mineira de Naburi ("CMDN"), and have sought to argue that the agreements by which IMM acquired the shares in CMDN were validly terminated and/or invalid. Damages in an amount equivalent to US$1,000,000 have been sought. As previously announced, the English High Court has already found that IMM validly acquired 99.99% of the shares in CMDN pursuant to the agreements in question, which are governed by English law, and that the Maputo Claimants were not entitled to terminate or rescind them.
Furthermore, the Company notes that, notwithstanding the Maputo Claim, it has already received a provisional ruling from the Maputo Court that IMM is the owner of 99.99% of the shares in CMDN as a matter of Mozambique Law and a final judgment is pending from the Maputo Court on this question, as previously announced. Although it really is not possible to be any more precise regarding the likely timing of that judgment than announced on 7 December 2012, the Company would expect the judgment to be received prior to any determination being made in the Maputo Claim. The directors hope that the Maputo Court will therefore find, as the English High Court did, in the Company's favour on the ownership issue which will further debase the Maputo Claim.
As Mozambique procedural law does not permit an application for strike out of the Maputo Claim on a summary basis, the Company will instead submit a robust defence of the claim. The directors believe on the basis of legal advice that the claims are without merit.
Speaking of the Maputo Claim, Nick Trew, Chief Executive, said: "The board considers the Maputo Claim to be a further desperate attempt to distract attention away from the legal successes already achieved. Judgments covering these issues have already been given in the Company's favour or are awaited. Nothing in the Maputo Claim shakes the Board's determination to enforce its ownership rights in CMDN, for which judicial support has already been given by both the English and Mozambique courts, and to seek recovery of its Licences. We consider our legal successes to be a strong catalyst for political and diplomatic momentum. The Board wishes to take this opportunity to thank shareholders for their continued support and remains hopeful that the loyalty which has been shown will be rewarded."
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 7464 8413
Daniel Stewart & Company Plc
David Hart or James Thomas
Tel: +44 (0)20 7776 6550
M: Communications
Ben Simons or Maria Souvorov
Tel: +44 (0)20 7920 2340
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.
Companhia Mineira de Naburi S.A.R.L. ("CMDN"), a subsidiary of Pathfinder Minerals, 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. Ownership of these licences is being disputed, as announced on 3 February 2012. 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.