Corporate Update

RNS Number : 3216I

Pathfinder Minerals Plc

01 April 2020

 

Pathfinder Minerals Plc

( " Pathfinder " or the "Company" )

Corporate Update

Pathfinder is pleased to provide the following update on, inter alia, its progress towards restoring an interest in Mining Concession 4623C in Mozambique (the " Licence " ) and the assessment of other opportunities within the mining sector.

Mining Concession 4623C

The Company ' s dialogue with General Jacinto Veloso, a 50 per cent. shareholder in the current Licence-holding entity (the " Licence-holder " ), continues to be constructive. Both parties view a proposed transaction involving Pathfinder as the most desirable route to a resolution as it would be expected to bring an end to respective legal claims associated with the Licence. 

Pathfinder has validated evidence that the remaining 50 per cent. shareholding in the Licence-holder has been transferred to a Chinese state-owned third party (the " Transferee " ). The Board is pleased to announce that, after extensive efforts, direct dialogue with the Transferee has now been established with a view to securing its participation in a proposed multi-party transaction involving the Licence. 

Any proposed transaction would, as previously announced, necessitate the involvement of a funding partner. Commercial discussions with a preferred partner (first announced on 24 October 2019), which is both technically competent and capable of funding a proposed transaction, along with future development costs associated with the Licence, are ongoing. In addition, further parties which the Board considers to have the requisite balance sheet backing and technical ability are now also actively engaged in pursuing a commercial settlement.

Pathfinder continues to solicit the Mozambique Government ' s assistance in encouraging a resolution in respect of the Licence to the benefit of all stakeholders. As part of this initiative, Pathfinder ' s chairman, Sir Henry Bellingham, and CEO, John Taylor, raised the Pathfinder issue with the president of Mozambique, His Excellency, Jacinto Filipe Nyusi, during a visit to the UK in January 2020. The Company is also receiving assistance from the UK High Commission in Maputo at the highest levels.

As previously announced on 3 January 2020, the commercial agreement with Africa Focus Group (the "AFG Agreement") was extended a further 3 months to the end of March 2020, albeit on a non-exclusive basis.  The AFG agreement, in its current form, is not being extended for a further period, although AFG remains a key advisor to the Company and will continue to be so going forwards.  Should AFG deliver a complete resolution to the Company's recovery of an interest in the Licence then bespoke commercial terms will be negotiated at the time.

Other opportunities

As announced on 3 January 2020, Pathfinder ' s Board has been actively assessing other potentially synergistic commercial opportunities within the mining sector. The Board continues to assess projects that it believes could add value to Company's shareholders and will update the market when appropriate. 

As previously announced, It is highly likely that any decision to be taken by the Board in respect of restoring an interest in the Licence and/or pursuing other such opportunities would require the approval of shareholders by way of a General Meeting. Further updates will be announced when appropriate.

John Taylor, Chief Executive Officer of Pathfinder, commented:

"A proposed transaction involving the restoration of an interest in the Mozambique Licence requires the alignment of multiple parties, including potential funders, in order to be facilitated. While there is no certainty that a transaction can be concluded to the satisfaction of all stakeholders within a timely manner, I am pleased to report that we are making real progress towards securing that multi-party alignment.

"It is apparent from our discussions that the Licence, as a substantial undeveloped mineral sands resource, remains of considerable interest to the industry and prospective financiers.

"I am also pleased that we have been able to ensure the Pathfinder issue continues to be in focus within the Mozambique Government as we work towards securing the involvement of all the stakeholders required to facilitate a resolution.

"Independently of the Mozambique Licence, progress is being made in assessing other opportunities , whose near-term cash generation potential would support the Company's main objective in respect of the Mozambique Licence.

I look forward to reporting any further developments when appropriate."

Enquiries:

Pathfinder Minerals Plc

John Taylor, Chief Executive Officer

Tel. [phone]

Strand Hanson Limited (Nominated & Financial Adviser and Broker)

James Spinney / Ritchie Balmer / Jack Botros

Tel. [phone]

Vigo Communications (Public Relations)

Ben Simons / Simon Woods

Tel. [phone]

Email. [e-mail]

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").

 

END

 

 

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