Pathfinder obtains interdict in Mozambique court

RNS Number : 5912P

Pathfinder Minerals Plc

26 October 2012

 

Embargoed: 0700hrs, 26 October 2012

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

Further court success

Pathfinder obtains interdict in Mozambique court
as part of its strategy to regain control of subsidiary, CMDN

On 19 October 2012, Pathfinder announced that it had obtained an English High Court judgment that it had validly acquired its 99.99% interest in Mozambican subsidiary Companhia Mineira de Naburi S.A. ("CMDN").  The Company also announced that a hearing was scheduled to take place on 25 October 2012 in the Maputo Court to consider, as a preliminary issue, the question of the status of the shareholding in CMDN as a matter of Mozambique law.  Upon arrival at the Maputo Court yesterday, representatives of the Company were told that that hearing had been adjourned to 6 December 2012, upon the application of the opposing party.

However, the Company is pleased to announce it received notification from the Maputo Court on 25 October 2012 that the Company's wholly owned subsidiary IM Minerals Limited ("IMM")was successfully awarded an interdict it had previously sought.  Shareholders will recall that, in the Company's announcement of 28 June 2012, reference was made to:

a) resolutions passed by IMM in January 2012 to remove the local directors from the board of CMDN (the "January Resolutions"); and

b) a rival undisclosed attempt by General Jacinto Veloso and Diogo Cavaco to hold a contradictory EGM of CMDN held the previous December. This purported to remove the Company's appointees on the board of CMDN and to authorise the cancellation and reissue of bearer share certificates in favour of JV Consultores Internacionais Limitada (General Veloso's company) and Diogo Cavaco (the "December Resolutions").

The interdict now received by IMM has the desired effect of suspending the December Resolutions, so that the purported removal of the Company's board appointees is not effective. 

The Maputo Court's judgment also includes a provisional finding that the nominative share certificate issued by CMDN to IMM is valid and permissible under the constitution of CMDN, indicating that IMM is indeed the holder of 99.99% of CMDN as a matter of Mozambique law.

Although the final determination of these issues remains subject to full trial in due course, the Company welcomes the interdict and will be analysing the full judgment in further detail to decide upon next steps in pursuing shareholders' interests.

Speaking from Maputo, Nick Trew, CEO of Pathfinder said:

"I am delighted with this further positive development in the legal proceedings we have been taking.  Last week we saw success in the English High Court.  Yesterday we received support for our legal rights from the Courts here in Maputo.  While there may still be a lengthy legal process ahead, the interdict we have received is further validation of our strategy to pursue our legal rights.  It also provides momentum which we feel can only help the parallel political and diplomatic processes under way."

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., 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 also 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.

 

END

 

 

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