Pathfinder Minerals secures assistance from Africa Focus for acquisition

Natural resources outfit Pathfinder Minerals has entered into a fixed period consultancy agreement with Hong Kong-based mergers and acquisitions specialist Africa Focus.

As part of the agreement, Africa Focus will assist Pathfinder in acquiring direct ownership and effective control of mining concession 4623C from its current owner, Pathfinder Moçambique.

Africa Focus, which was contracted to work with the AIM-listed firm until September, will be entitled to a conditional £1m fee. Pathfinder said it would consider a request by Africa Focus to convert its fee into new shares in the group.

Chief executive Scott Richardson Brown said: "I feel confident that we can move forward with them to the successful conclusion of the good faith negotiations that are progressing in Mozambique."

"The possibility of AFG taking an equity interest in the company in future, we believe, would align their interests with those of our shareholders."

As of 0915 GMT, Pathfinder shares had climbed 7.60% to 1.34p.