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Pathfinder shares plummet as Mozambique licence dispute tunnels onward
Pathfinder Minerals' share prices fell dramatically on Monday after the company gave an update on its dispute over the ownership of mining licences in Mozambique.
The Licences are currently held by the company's former business partner General Jacinto Veloso, who the company said has rejected the possibility of agreeing a negotiated settlement to solve the dispute.
The English High Court ruled against former Mozambique government minister Veloso back in 2012, stating that the licences were legally Pathfinder's as the company had validly acquired its shares in the licence holding subsidiary.
Nick Trew, chief executive of Pathfinder, said on 21 February: 2While 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."
With the recent news of Veloso's rejection of a negotiated settlement it seems likely that Pathfinder will have to wait for the Mozambique Supreme Court of Judgement to pass a ruling, dragging the dispute out even further.
The disputed 25 year licences cover a 32,000 hectare area of land on the Indian Ocean coast of the Zambezia province, an area rich in heavy minerals such as ilmenite, used to make paint, rubber and zircon.
As of 1420 GMT, Pathfinder Minerals' shares were down 37.52% at 0.66p.