Last checked at 3 Feb 2012 12:20
For immediate release: 3 February 2012
Pathfinder Minerals Plc
("Pathfinder Minerals", the "Company")
Update Regarding Status of Licence Ownership
Pathfinder Minerals has received an update from the Republic of Mozambique's Ministry of Mineral Resources (the "Ministry") in respect of its request for information concerning any change, revocation or cancellation of mining concession licences 4623C and 760C. The licences were issued to Pathfinder Minerals' subsidiary Companhia Mineira de Naburi S.A.R.L. ("CMDN"). Whilst the Ministry advised that the mining registry of Mozambique no longer shows licence 4623C and 760C as being registered to CMDN, it has given no explanation as to the reasons for or basis of this register change and has advised that it requires any request for information concerning the licences to be made by the board of directors of CMDN, represented by its chairman, or registered attorney.
Pathfinder Minerals, through its legal advisers in Mozambique, is seeking to satisfy this requirement of the Ministry with a view to having the mining register rectified. This action is being taken notwithstanding attempts by General Veloso and associates, noted in Pathfinder Minerals' announcement of 31 January 2012, to gain control of CMDN by taking steps which, on the strength of the facts known to the Company's Mozambique counsel, comprise illegal actions and are defective under Mozambique law.
Pathfinder Minerals continues to understand that, at present, a licence over the same areas covered by 4623C and 760C has been issued to a company called Pathfinder Moçambique S.A (an entity which is wholly unconnected with Pathfinder Minerals, but which is controlled by General Veloso, a retired government minister in Mozambique and a former director of Pathfinder Minerals and CMDN, and his associates).
As previously stated, all avenues (both in the UK and Mozambique) are being pursued to secure the Company's licences and resume project development. This includes continued efforts at the ministerial level to find a timely solution through political channels. Further announcements will be made in due course.
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 7399 4371
Daniel Stewart & Company Plc
Paul Shackleton or James Thomas
Tel: +44 (0)20 7776 6550
M: Communications
Ben Simons or Maria Souvorov
Tel: +44 (0)20 7920 2340 /2327
Notes to Editors
Companhia Mineira de Naburi S.A.R.L ("CMDN"), a subsidiary of Pathfinder Minerals, was issued mining concession licence 4623C ("Moebase") on 13 July 2011 for a period of twenty-five years. The Moebase licence is in addition to licence 760C ("Naburi"), also granted in the name of CMDN for a period of 25 years ending in 2029. 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.
Pathfinder Minerals Plc is admitted to trading on the AIM market of the London Stock Exchange. Trading was suspended on 11 November 2011 at the Company's request, following notification from General Veloso of his resignation as a director and assertions by him that CMDN is no longer the licence holder. The Company's ownership rights over CMDN are also in dispute and are the subject of injunctive steps in Mozambique and the UK.