Rome Resources Plc has settled a dispute with the Mozambique government regarding a mining concession. A settlement replaces cash compensation with five exploration licences, in which Rome holds a 30% carried interest and will not pay exploration costs. Any potential financial gains from these assets will be distributed to eligible legacy shareholders, while the company’s primary focus remains on the Bisie North Project in the DRC.
Rome Resources Plc has reached a settlement with the Mozambique government regarding Mining Concession 4623C, which had been expropriated in 2011. The settlement will not involve a cash payout but includes five new research and exploration licences granted to a Mozambican entity. Rome Resources holds a 30% carried interest in these new assets, covering approximately 600 square kilometers that are anticipated to contain graphite and heavy mineral sands.
As a carried stakeholder, Rome Resources will not incur any exploration costs related to these new assets. The firm anticipates pursuing a liquidity event as soon as feasible to capitalize on any valuable outcomes from these assets. Proceeds from future monetization will be distributed to eligible legacy shareholders after accounting for expenses.
CEO Paul Barratt emphasized that the settlement offers legacy shareholders a potential benefit, particularly through the graphite licences. He noted, however, that the company will not invest any financial resources into this project, maintaining that exploration for tin and copper at the Bisie North site in the DRC is the company’s main focus moving forward. He also expressed eagerness to update shareholders on the Bisie North Project’s progress in the near future.
The settlement agreement between Rome Resources and the Mozambique government resolves a long-standing dispute over Mining Concession 4623C. The company now holds a 30% carried interest in promising new assets without incurring exploration costs, with potential future proceeds benefiting legacy shareholders. However, Rome Resources remains focused on its core activities in the Bisie North Project in the DRC.
Original Source: www.proactiveinvestors.com
