Pathfinder Minerals Plc Corporate Update (7119Y)
January 03 2020 - 6:20AM
UK Regulatory
TIDMPFP
RNS Number : 7119Y
Pathfinder Minerals Plc
03 January 2020
3 January 2020
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Corporate Update
Pathfinder (AIM: PFP) is pleased to provide an update on its
progress towards restoring an interest in Mining Concession 4623C
in Mozambique (the "Licence") and on other (unconnected) commercial
opportunities that have been presented to the Board of Directors of
Pathfinder (the "Board") to assess.
As announced on 24 October 2019, a period of meetings took place
in both South Africa and Mozambique in that month between members
of the Board, its representatives and various key stakeholders
involved in the process of working to secure a resolution of the
issues surrounding the Company's previous interest in the Licence.
Since then, two further rounds of meetings have been undertaken by
Board representatives in Mozambique and South Africa to intensify
the progress and further meetings are planned for this month.
A number of additional meetings have been conducted with the
preferred funding partner which, as announced on 24 October 2019,
is both technically competent and has the means to fund both a
settlement itself and future development costs associated with the
Licence. The party is continuing with its due diligence process. In
addition, further dialogue has been conducted with the shareholders
of Pathfinder Moçambique S.A. (the current Licence holder) with a
view to concluding a mutually acceptable settlement in respect of
the Licence. These discussions continue in good faith and have been
facilitated by Africa Focus Group ("AFG") at every stage.
The Company announced on 24 October 2019 that the agreement with
AFG was extended until 31 December 2019 and, given the ongoing
progress that continues to be made with all parties, the Board has
determined it in the interests of the Company to extend this
agreement for a further three months on a non-exclusive basis. This
allows the Board to explore other funding avenues unilaterally and
to pursue other commercial opportunities where there is a clear
synergy with the Board's expertise and the Company's natural
resource focus. All other terms of the agreement with AFG remain
the same.
As previously stated, while the Board remains confident of a
successful resolution of the dispute surrounding the Licence, there
is no certainty that this can be achieved to the satisfaction of
all stakeholders within a timely manner. As such, the Board
believes that it is in the interests of the Company also to assess
other appropriate commercial opportunities. Accordingly, the Board
is actively assessing two independent opportunities, with due
diligence on their suitability for Pathfinder now at an advanced
stage. The key consideration in any decision-making is whether a
broadening of interests beyond the Licence will assist the Board in
recovering shareholder value and generating future additional value
through cash generation that would alleviate the pressure for
future, potentially dilutive, funding requirements associated with
Pathfinder's prospective interest in the Licence. 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.
John Taylor, Chief Executive Officer of Pathfinder,
commented:
"I continue to be encouraged by the progress made since our last
update which reflects the considerable efforts of my fellow
directors in relentlessly pursuing a successful outcome to the
recovery of an interest in the Licence. In addition, I believe the
strategic decision to also explore wider commercial interests is
the correct course of action to take. The Board's focus remains
firmly on a successful resolution of the long-running dispute over
the Licence and consideration of wider opportunities will not
detract from that priority. I look forward to updating shareholders
on further progress across a number of fronts."
Enquiries:
Pathfinder Minerals Plc
John Taylor, Chief Executive Officer
Tel. +44 (0)20 3440 7775
Strand Hanson Limited (Nominated & Financial Adviser and
Broker)
James Spinney / Ritchie Balmer / Jack Botros
Tel. +44 (0)20 7409 3494
Vigo Communications (Public Relations)
Ben Simons / Simon Woods
Tel. +44 (0)20 7390 0234
Email. pathfinderminerals@vigocomms.com
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").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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