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Pathfinder Minerals Rises on Deal to File Complaint Against Mozambican Government

Pathfinder Minerals Rises on Deal to File Complaint Against Mozambican Government

English news portal Youinvest.co.uk advanced, on Thursday afternoon, 29 September, that shares in Pathfinder Minerals PLC rose after it reached an agreement to sell its wholly owned subsidiary IM Minerals Ltd, as well as the rights to claim a mining licence in Mozambique.

According to the portal, the company’s shares rose 48 percent 78 pound cents (53 meticals) each in London on Thursday afternoon.

Pathfinder said that the option agreement was signed with Acumen Advisory Group LLC, an asset recovery specialist based in Delaware, US.

If the deal comes to fruition, Acumen will pay Pathfinder two million pounds sterling to buy IM Minerals and the rights to bring an action against the Mozambican government for the expropriation of a mining concession in the country.

The portal also states that Acumen must also confirm that it has secured at least $15 million in financing and that it will use its “best efforts to bring the claim to a satisfactory conclusion within five years.” It will then make a contingent payment to Pathfinder of $24 million, or 20 per cent of net recoveries, if the licence application is granted.

Pathfinder has been struggling to regain its mining licence for several years now. The company lost the licence in 2011, when the mining concessions were consolidated and awarded to Pathfinder Mocambique SA, which is unaffiliated with Pathfinder Minerals.

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Acumen has until 30 December to enter into the agreement.

Chief Executive Peter Taylor revealed that “this transaction, if completed, will ensure that the full force of a timely and well-funded claim is brought against the Government of Mozambique and that Pathfinder can participate very considerably in any financial advantage that has been independently assessed to be worth between $110 million and $1.5 billion.”

Separately, Pathfinder said it had entered into an unsecured loan of up to £20,000 with an “FCA authorised financial institu

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