Last checked at 29 Jun 2021 07:00
29 June 2021
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Update re Bilateral Investment Treaty Claim
Pathfinder announced on 11 December 2020 that the title holder for mining concession 4623C (the "Licence"), as specified on the Mozambique Mining Cadastre Portal, had changed to TZM Resources S.A. ("TZM"). The Company subsequently announced on 21 May 2021 that Pathfinder's solicitors had notified TZM of the Company's dispute regarding the ownership of the Licence.
Pathfinder announces that on 24 June 2021, the Company held a virtual meeting with the Chairman of the Board of Directors of TZM. The meeting was facilitated and attended by representatives from the British High Commission in Mozambique, the UK Department for International Trade, and the National Mining Institute of the Mozambique Ministry of Mineral Resources and Energy.
The purpose of the meeting was to confirm to TZM that in the absence of an acceptable resolution of the dispute with the Government of Mozambique, Pathfinder intends to refer the matter to the International Centre for Settlement of Investment Disputes ("ICSID") under the Mozambique - United Kingdom Bilateral Investment Treaty (2004) (the "Treaty"). Accordingly, TZM could lose the benefit of its investment to date in the Licence, together with any further investment it may make in relation to the Licence.
Pathfinder and TZM (together the "Parties") agreed that, whilst the issue remains an Investor-State Dispute ("ISD") and is time sensitive, the Parties will continue with the dialogue and explore alternative solutions to resolve the ISD. Whilst tentative, these alternatives include, but are not limited to, TZM retaining the Licence and compensating Pathfinder for its loss.
The Company continues to prepare for a claim under the Treaty and will provide further updates when appropriate.
Peter Taylor, Chief Executive Officer, commented:
"We believe the opportunity to resolve this matter and the consequences of failing to do so are clear to the Government of Mozambique and to TZM. Whilst we reserve our position with respect to the Treaty claim, constructive dialogue with TZM is a positive development and we will continue to engage with them."
Enquiries:
Pathfinder Minerals Plc
Peter Taylor, Chief Executive Officer
Tel. +44 (0)20 3143 6748
Strand Hanson Limited (Nominated & Financial Adviser and Broker)
James Spinney / Ritchie Balmer / Rob Patrick
Tel. +44 (0)20 7409 3494
Vigo Consulting (Public Relations)
Ben Simons / Kate Kilgallen
Tel. +44 (0)20 7390 0234
Email. pathfinderminerals@vigoconsulting.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").