Enforcement of English costs orders

RNS Number : 9595H

Pathfinder Minerals Plc

24 August 2016

 

24 August 2016

Pathfinder Minerals Plc

("Pathfinder" or the "Company")

Enforcement of English costs orders

Following the Company's announcement on 22 June 2016, Pathfinder is pleased to announce that on 23 August 2016 the English High Court made orders for the sale of the aggregate 19,824,000 shares held by JV Consultores Internacionais Limitada ("JVC") and Diogo Cavaco in the Company (the "Orders for Sale"). Obtaining the Orders for Sale is a further important step in the Company's enforcement in England of certain orders for payment of costs to the Company. 

By way of background, and as explained in the Company's announcement of 22 June 2016, Pathfinder and its wholly owned subsidiary, IM Minerals Limited ("IMM" and, together, the "Claimants"), brought substantive legal proceedings in England (the "English Proceedings") against General Jacinto Soares Veloso, JVC (General Veloso's company) and Mr Cavaco (together the "Defendants"). The Claimants obtained judgment to the effect that, amongst other things, IMM validly acquired 99.99% of the issued shares of Companhia Mineira de Naburi S.A.R.L. ("CMDN"). The English Court ordered the Defendants to pay the Claimants' costs of the English Proceedings and made a number of orders for payment of, and on account of, those costs, aggregating £1,106,000 (the "Costs Orders"). The Defendants have not complied with any of the Costs Orders.  

As explained in the Company's announcement of 22 June 2016, JVC and Mr Cavaco acquired their shares in the Company pursuant to a share exchange agreement entered into in 2010, one of the agreements by which IMM acquired its shareholding in CMDN.

The effect of the Orders for Sale is that, unless the Defendants pay to the Claimants the amounts set out in the Costs Orders plus interest (totalling in excess of £1,400,000) (the "Debt"), JVC's and Mr Cavaco's shares, or sufficient of them to discharge the Debt, shall be sold (the timing of such sale to be at the Claimants' discretion), with the proceeds being applied in the first instance to satisfy the Debt. 

The directors intend to maximise the value which will be obtained from the sale of the shares that are subject to the Orders for Sale at some point in the future, by way of an orderly placing.

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. [phone]

WH Ireland Limited (Nomad and Broker)

Paul Shackleton or James Bavister

Tel. [phone]

Vigo Communications

Ben Simons or Ali Roper

Tel. [phone]

Email. [e-mail]

Notes to Editors:

Pathfinder Minerals Plc is incorporated in England and is admitted to trading on the AIM market of the London Stock Exchange.

Companhia Mineira de Naburi S.A.R.L., a subsidiary of Pathfinder Minerals, 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

 

 

MSCLFFVITDIVFIR