Rome Resources Settles Dispute with Mozambique: Future Benefits for Shareholders
Rome Resources has settled a dispute with the Mozambique government, obtaining a 30% interest in five new exploration licenses instead of cash. This settlement aims to provide potential returns for legacy shareholders, while the company remains focused on its Bisie North mining project without additional financial investment in Mozambique’s initiatives.
Rome Resources Plc has announced a settlement agreement concerning a legacy dispute with the Mozambique government regarding the expropriation of Mining Concession 4623C in 2011. The resolution involves an agreement between the company, IM Minerals Limited, and the Mozambique authorities, concluding the long-standing issue while not requiring any cash payment.
As part of the settlement, the Mozambique government has awarded five new research and exploration licenses to a local entity. Rome Resources will acquire a 30% ‘carried’ interest in these licenses, covering approximately 600 square kilometers, which are projected to have potential resources of graphite and heavy mineral sands.
Importantly, Rome Resources will not need to finance exploration costs for these projects. The company anticipates pursuing a ‘liquidity event’ as soon as it is feasible. Notably, any cash generated from the eventual monetization of these assets will be allocated to eligible legacy shareholders, with deductions for associated expenses.
Paul Barratt, the chief executive of Rome Resources, stated, “The settlement gives the legacy shareholders, most promisingly through the graphite licences, a potential route to monetary compensation for the claim.” He also clarified that the company will not be investing financial capital into this new venture and emphasized that exploration at the Bisie North site in the Democratic Republic of Congo remains the firm’s primary focus.
Barratt further expressed anticipation regarding providing shareholders with updates concerning the grades and volumes at the Bisie North Project shortly.
In summary, Rome Resources’ settlement with the Mozambique government aims to provide future benefits for legacy shareholders through new exploration licenses, while the company maintains its focus on ongoing projects. The decision not to invest in the new initiatives reflects a strategic approach to prioritize existing interests. Future updates regarding the Bisie North project are expected to be communicated to stakeholders.
Original Source: www.proactiveinvestors.co.uk
