Last checked at 12 Apr 2021 07:00
12 April 2021
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Update re Bilateral Investment Treaty Claim
Pathfinder announced on 2 November 2020 that, should the Company be unable to resolve its dispute with the Government of Mozambique over the unlawful transfer of Mining Title 4623C to an unconnected company, the Board would seek recourse to the bilateral investment treaty signed by the Government of the Republic of Mozambique and the Government of Great Britain and Northern Ireland (the "Treaty").
Repeated attempts on behalf of Pathfinder to engage with Mozambique's Ministry of Mineral Resources and Energy ("MIREME") regarding the matter, including several requests that MIREME take certain steps to limit the damage caused to Pathfinder, have been unsuccessful. Further, it appears that, as a result of, and in continuance and serious aggravation of, the breaches of the Government of Mozambique's obligations under the Treaty, further transfers in relation to the ownership of Mining Title 4623C have taken place, thereby increasing Pathfinder's exposure to losses.
Accordingly, Pathfinder's solicitors have now written to Mozambique's Minister of Mineral Resources and Energy making it clear that, in the event that Pathfinder refers the matter to the International Centre for Settlement of Investment Disputes ("ICSID") under the Treaty, the ICSID tribunal would have the power to order the return of Mining Title 4623C to Pathfinder's control or to order payment of damages by the Government of Mozambique to compensate Pathfinder for its loss. Pathfinder estimates its losses in connection with the diversion of the licensed areas, including lost profits, to be in excess of US$ 621.3 million. Shareholders should be aware that there is no guarantee that this, or any, amount will be recovered, should the Company refer the matter to the ICSID.
Peter Taylor, Chief Executive Officer of Pathfinder, commented:
"It appears that MIREME not only failed to limit the risk of a disposal of Mining Title 4623C but positively facilitated it, thereby increasing the Company's exposure to losses. Pathfinder estimates its losses exceed US$ 621.3 million and should we continue to be unable to resolve the matter with the Government of Mozambique, the Board intends to pursue its valuable claim under the Treaty, with the support of litigation funders."
Enquiries:
Pathfinder Minerals Plc
Peter Taylor, Chief Executive Officer
Tel. +44 (0)20 3143 6748
Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer / Rob Patrick
Tel. +44 (0)20 7409 3494
Vigo Communications (Public Relations)
Ben Simons / Simon Woods
Tel. +44 (0)20 7390 0234
Email. pathfinderminerals@vigocomms.com
Novum Securities Limited (Corporate Broker)
Colin Rowbury / Jon Belliss
Tel. +44 (0)20 7399 9400
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").