Company Update

RNS Number : 2130S

Pathfinder Minerals Plc

16 March 2016

 

Embargoed: 0700hrs 16 March 2016

Pathfinder Minerals Plc

("Pathfinder" or "the Company")

Company Update

Pathfinder provides a further update below on the Company's position and steps to recover mining licences 760C and 4623C (the "Licences").

Legal proceedings in Mozambique

As previously announced on 2 March 2016, Pathfinder continues to await information from the Mozambique Courts on pending judgments and, while the directors remain confident of their outcome, the Company has no visibility on the timing of such judgments. Pathfinder will continue to update shareholders whenever it is notified of any material developments in the legal proceedings. 

Other routes to recover the Licences

As previously announced, the Company is not relying solely on the Mozambique Courts to recover the Licences; Pathfinder continues to pursue other possible routes to achieve a faster resolution. As such, the Company is in discussions to appoint a potential new local representative in Maputo to assist Pathfinder in its dialogue with the Mozambique Government. No formal agreement with the prospective local representative has yet been signed however, in the event that such an appointment is made, it is expected that the Company would issue up to 25 per cent of its share capital to the local representative should the Licences be successfully restored to the Company's control.

Funding discussions

The Company continues to hold discussions with regards to the raising of a small amount of additional working capital in order to help it address its financial situation. It is currently envisaged that such working capital will be provided by way of a subscription, which will include a director of the Company and would accordingly constitute a related party transaction under the AIM Rules for Companies. A further announcement will be made in due course.

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. [phone]

WH Ireland Limited (Nomad and Broker)

Paul Shackleton or Mark Leonard

Tel. [phone]

Vigo Communications

Ben Simons or Ali Roper

Tel. [phone]

Email. [e-mail]

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.

CMdN, a subsidiary of Pathfinder, 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. 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.

As announced on 3 February 2012, ownership of these licences is being disputed.

 

END

 

 

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