Pathfinder Minerals to make final submissions in Mozambique license dispute

Natural resource mining firm Pathfinder Minerals on Friday received a request from the supreme court of Mozambique for its final submissions regarding claimed ownership of mining concession licences.

An earlier English judgment ruled that the AIM-traded company validly acquired its 99.99% shareholding in Companhia Mineira de Naburi S.A.R.L. (CMDN), the Mozambique entity to which mining concession licences 760C and 4623C were registered, and that all the agreements were governed by English law.

Nick Trew, chief executive of Pathfinder Minerals, said: "While neither the timing nor the outcome of the supreme court ruling can be predicted, Pathfinder is confident in its application for recognition of this foreign judgment in Mozambique and is encouraged by the request for final written submissions, which provides reassurance that the wheels of justice are turning."

Pathfinder originally lodged its application to recognise the English judgement to the Mozambique supreme court on 2 August 2013.

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.

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

"Though there can be no certainty of a favourable decision, the board believes that such a favourable decision would ultimately cause the ministry of mineral resources of Mozambique to restore control of the areas previously licensed to CMDN to Pathfinder's control, and enable the company to resume development of the project," said Trew.

As of 1008 BST, Pathfinder Minerals’ shares were up 7.81% at 1.72p.