Rome Resources Plc has announced a settlement with the Mozambique government over its expropriation claim for mining concession 4623C. The settlement includes five new exploration licenses, granting Rome a 30% carried interest. The company emphasizes continued focus on its DRC projects while recognizing opportunities for legacy shareholders through potential dividends from the new licenses.
Rome Resources Plc, a company focused on tin and base metals exploration, has announced a settlement with IM Minerals Limited and the Mozambique government regarding its expropriation claim over mining concession 4623C from 2011. The settlement will provide Rome with a 30% carried interest in five new exploration licenses to be awarded to a Mozambican company nominated by IM Minerals.
The original claim, previously owned by Pathfinder Minerals plc, was sold to Acumen Advisory Group LLC, which subsequently transferred it to Luangwa Resources LLC. During negotiations, the Mozambican government cited the prior management’s insufficiencies as justification for not offering a cash settlement, leading to the current arrangement of alternative licenses.
The new licenses include: 18,857 ha and 14,003 ha areas of Licence No. 5197, and three additional licenses covering 14,340 ha, 11,673 ha, and 860 ha. These licenses collectively span approximately 59,733 hectares, presenting significant opportunities for graphite and heavy mineral sands.
Luangwa will control the new licenses, but through a side agreement, Rome will retain a passive 30% interest without needing to cover exploration costs. If the licenses generate cash through various monetization strategies, Luangwa’s costs up to $2 million will be deducted from distributions made to Rome, only if total cash falls below $7 million.
Legacy shareholders of Pathfinder, by holding Bonus Preference Shares, may receive preferential dividends equal to any damages awarded from the claim. Rome acknowledges that some shareholders may be disappointed by the non-cash nature of the settlement but is committed to working with Luangwa to maximize the licenses’ potential value.
CEO Paul Barrett emphasized that while the settlement provides a potential path to compensation for legacy shareholders, Rome will primarily focus on its tin and copper exploration efforts at the Bisie North site in the DRC. Future updates are anticipated regarding these developments and ongoing projects.
In summary, Rome Resources Plc has reached a settlement with the Mozambique government, exchanging the expropriation claim for a 30% shared interest in newly granted exploration licenses. This settlement pivots on securing alternatives to direct cash compensation, with significant potential in graphite and mineral sands. The company remains focused on broader project advancements, particularly in the DRC, ensuring future updates for stakeholders.
Original Source: www.sharesmagazine.co.uk
