Update on Mozambique Court Proceedings

RNS Number : 1197U

Pathfinder Minerals Plc

19 October 2017

 

19 October 2017

Pathfinder Minerals Plc

("Pathfinder" or the "Company")

Update on Mozambique Court Proceedings

Further to the Company's update of 29 September 2015 (the "September Update"), the Company has been notified that the Supreme Court of Mozambique has dismissed its 'harmonisation of laws' appeal, as referred to in the September Update, on procedural grounds. As indicated in the September Update, a successful appeal would not have affected the underlying decision of the Mozambique Supreme Court not to recognise certain costs judgments obtained from the English courts in any event. The Company's application for recognition of the English court's substantive decision in respect of the agreements by which Pathfinder acquired its shares in CMDN (the "Substantive English Judgment"), together with additional costs orders, remains to be determined. The Company is advised that the Supreme Court is not bound to follow its previous decisions, although it would not be appropriate to speculate on the likely outcome of the application for recognition of the Substantive English Judgment, nor is it known when that application will be determined by the Mozambique Supreme Court. 

Alternative steps to achieving a resolution

As announced in Pathfinder's Half-year Report on 28 September 2017, the Company is striving to enhance the prospect of an alternative resolution that does not rely on the courts.

As announced on 20 September 2017, the Company's regional representative in Mozambique is leading discussions on the Company's behalf with the two principal parties to a would-be resolution: the Mozambique Government and Jacinto Veloso. While the content of such discussions is sensitive, Pathfinder confirms that it has presented the framework of an agreement with Jacinto Veloso that would, if successful, result in the restoration of the licensed areas to Pathfinder's control.

The terms attached to a potential resolution remain fluid and there is no certainty of a successful outcome to these discussions. As Pathfinder is able to control only its role in these discussions, the Company has no visibility over the timing of which a resolution may be achieved. The Board is, however, encouraged by the progress being made towards an alternative resolution and is optimistic that one can be concluded.

Any material updates will be reported through the regulatory news service.

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. [phone]

WH Ireland Limited (Nomad and Joint Corporate Broker)

Paul Shackleton or James Bavister

Tel. [phone]

Beaufort Securities Limited (Joint Corporate Broker)

Jon Belliss or Elliot Hance

Tel. [phone]

Vigo Communications (Public Relations)

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.

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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