Rome Resources Plc has settled a dispute with the Mozambique government, resulting in five new exploration licenses awarded to a Mozambican entity. The company retains a 30% carried interest in these licenses, focused on graphite and heavy mineral sands, without incurring exploration costs. Future profits from these assets will be distributed to legacy shareholders, while the company’s primary focus remains on its Bisie North project in the DRC.
Rome Resources Plc has reached a settlement regarding a long-standing dispute with the Mozambique government concerning the expropriation of Mining Concession 4623C, which occurred in 2011. The new agreement includes the issuance of five research and exploration licenses to a Mozambican entity, rather than a direct cash settlement. Rome Resources holds a 30% carried interest in these licenses, covering nearly 600 square kilometers, with potential for graphite and heavy mineral sands.
Importantly, Rome Resources will not bear exploration costs for these licenses. The company plans to pursue a liquidity event to monetize the assets as soon as feasible, with any resultant cash proceeds earmarked for distribution to eligible legacy shareholders after covering related expenses. This development presents a potential financial route for these shareholders.
Chief Executive Paul Barratt highlighted the significance of the settlement, indicating it opens pathways for monetary compensation tied to the newly awarded graphite licenses. He also reaffirmed that Rome Resources will not allocate financial resources towards this project, as the company’s primary focus remains on the exploration of tin and copper at the Bisie North site in the Democratic Republic of the Congo (DRC). Barratt anticipates providing updates on progress concerning grades and volumes from the Bisie North Project shortly.
The settlement agreement reached by Rome Resources with the Mozambique government offers a promising opportunity for legacy shareholders to receive potential monetary returns through new exploration licenses. With a carried interest in valuable resources, Rome is focused on monetization while redirecting attention to ongoing projects in the DRC, suggesting a strategic balance between resolving legacy issues and pursuing current exploration objectives.
Original Source: www.proactiveinvestors.co.uk
