Further court success in Mozambique

RNS Number : 1796S

Pathfinder Minerals Plc

28 November 2012

 

For immediate release: 28 November 2012

Pathfinder Minerals Plc
("Pathfinder" or "the Company")

Further court success in Mozambique

Mozambique court revokes interdict against IMM

Pathfinder is pleased to announce that, in a judgment received from the Mozambique court on 27 November 2012 (the "Maputo Judgment"), an interdict previously obtained by General Jacinto Veloso, JV Consultores Internacionais Limitada and Diogo Cavaco (together the "Defendants") against the Company's wholly owned subsidiary IM Minerals Limited ("IMM") has been revoked.

As announced by the Company on 28 July 2012, the Defendants had sought through this interdict to prohibit IMM from taking action in the English courts under agreements relating to the acquisition by IMM of 99.99% of the issued shares in Mozambican subsidiary CMDN - effectively an anti-suit injunction.   At a hearing on 3 May 2012 in Maputo, at which Pathfinder, through IMM, contested the interdict, the judge confirmed that she had not been made aware of the existence of the English proceedings which had been underway since December 2011 when she had first granted the interdict and that the interdict did not apply to those English proceedings.  That position has now been confirmed by the Maputo Judgment. 

Pathfinder announced on 19 October 2012 that it had obtained a declaratory judgment against the Defendants in the English High Court (the "High Court Judgment") and that it would be taking steps to have the judgment recognised in Mozambique.  The Defendants however have sought to assert, both in court documents and in statements made in the press and on the internet, that the Mozambique interdict applied to the existing English proceedings as well as any future proceedings in England and that, as a consequence, the English proceedings were illegal and the directors of IMM risked criminal sanctions. 

The Company is happy to report that not only does the Maputo Judgment make it clear that the current English proceedings (culminating in the High Court Judgment) were never covered by the interdict, but the interdict itself has now been completely dismissed.  The Defendants' claims that there are local law sanctions prohibiting IMM from taking action in the English courts, and rendering those proceedings illegal, are therefore completely baseless.

In the Maputo Judgment, the Judge found also that the provisional interdict amounted to an abuse of process and that the validity of the agreements which were subject to the proceedings in England should be assessed in the main proceedings brought by the parties. 

The Maputo Judgment provides further validation of the Company's understanding of its rights under Mozambique law.  The overturning of the interdict removes another hurdle that the Defendants claim to exist to the recognition and enforcement in Mozambique of the High Court Judgment and associated costs orders.

Pathfinder believes that this judgment provides clear evidence of continued momentum in the legal process which the Company is pursuing in order to preserve and prosecute its legal rights and, in conjunction with diplomatic and political representations, to regain control of its licence interests in Mozambique.

Pathfinder notes that there are further hearings in Mozambique on 6 December 2012 at which the position relating to the ownership and control of CMDN will be considered.  As previously announced, the most recent court rulings, including the English High Court judgment, will be brought to the Maputo Court's attention at those hearings.

Commenting on the Mozambique Judgment, Nick Trew, CEO, said:

"Once again, I am gratified by the further support from the Mozambique courts for our legal arguments. Our faith in the legal process has been rewarded and I look forward to being able to attend the next court hearing in Maputo on 6 December without the threat of any unjustified legal interference.

We remain keen nevertheless to find a consensual solution to restore our interests.  In the light of yesterday's judgment and the earlier court successes both in England and Maputo, I urge General Veloso to co-operate with Pathfinder and local authorities in reinstating control of our licence interests in Mozambique.  Once rectified, the Company can then continue to pursue its goals to benefit the Mozambique economy, to provide local jobs and to create value for our shareholders."

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. [phone]

Daniel Stewart & Company Plc

David Hart or James Thomas

Tel: [phone]

M: Communications

Ben Simons or Maria Souvorov

Tel: [phone] /2327

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. 

Companhia Mineira de Naburi S.A.R.L. ("CMDN"), 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.  Ownership of these licences is being disputed, as announced on 3 February 2012. 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.

 

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