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Pathfinder Minerals shares drop amid Mozambique legal battle
Pathfinder Minerals provided an update on Wednesday on its battle to recover control of areas in Mozambique that were previously licenced to it.
The licences are currently held by Pathfinder's former partner and former Mozambique government minister, General Jacinto Veloso, who gained them after they were appropriated from a subsidiary company in 2011.
In 2012 the English High Court ruled against Veloso and others concluding that Pathfinder had validly acquired its shares in the licence holding subsidiary and the company is now pursuing a dual track process to recover the licences through recognition of the judgement by the Mozambique Supreme Court of Judgement, or through a negotiated statement with Veloso.
Pathfinder said its board had been advised that the prospects for recognition of the judgement in Mozambique are high.
Nick Trew, chief executive of Pathfinder, said: "While there have been twists and turns, we are optimistic that, subject to the fulfilment of certain criteria, a negotiated settlement is achievable. We should be mindful nonetheless that, absent a negotiated settlement, the company believes the declaratory judgment from the English High Court in its favour will eventually be recognised in Mozambique."
The 25 year licences cover a 32,000 hectare area of land on the Indian Ocean coast of the Zambezia province, which is rich in heavy minerals such as ilmenite, used to make paint, rubber and zircon.
As of 1542 GMT, Pathfinder Minerals' shares were down 14.17% at 1.03p.