Settlement Agreement with Mozambique Government and Future…

Rome Resources Plc has entered into a settlement agreement with IM Minerals Limited and the Mozambique government concerning the expropriation of Mining Concession 4623C. The agreement results in new exploration licenses, granting Rome a 30 percent carried interest. Although the settlement is non-cash, it represents a potential value opportunity for shareholders.

On March 20, 2025, Rome Resources Plc announced a settlement agreement with IM Minerals Limited and the Mozambique government concerning a legacy claim regarding the expropriation of Mining Concession 4623C in 2011. The company, formerly known as Pathfinder Minerals plc until July 24, 2024, is focused on tin and base metals exploration in the Democratic Republic of Congo (DRC).

As per the terms of the settlement, the Mozambique government will issue five new research and exploration licenses to a Mozambican company nominated by IM Minerals. These new licenses will provide Rome with a 30 percent carried interest in the future value derived from these licenses.

The history of the claim reveals that the expropriation arose from alleged failures of the company’s prior management to implement adequate safeguards before the expropriation took place. This led to a devaluation of the claim, causing the Mozambican government to forgo offering a cash settlement and instead propose new exploration licenses.

The newly appointed licenses encompass approximately 59,733 hectares. They include regions for graphite and heavy mineral sands, with plans for early marketing campaigns aiming to generate cash returns. However, further technical work will be necessary for some licenses to reach marketable status.

Though Luangwa Resources LLC retains control over the new licenses, Rome will benefit from a guaranteed 30 percent carried interest without contributing to exploration expenses. Any monetary values realized through sales or agreements relating to these licenses may affect distributions to shareholders, particularly if final returns exceed set thresholds.

In addition, shareholders recorded as of September 5, 2023, will be eligible for a preferential dividend through a new class of bonus shares. The board acknowledges there may be disappointment regarding the non-cash nature of the settlement and intends to collaborate with Luangwa to maximize value from the new licenses for the benefit of shareholders.

Paul Barrett, CEO of Rome Resources, highlighted the positive aspects of the settlement, particularly regarding potential financial compensation for legacy shareholders. He reaffirmed the company’s commitment to its exploration focus in the DRC and their intention to keep shareholders informed about progress.

In conclusion, Rome Resources Plc has successfully reached a settlement regarding the expropriation of Mining Concession 4623C, resulting in the issuance of new exploration licenses. Although the settlement is non-cash, the company has secured a 30 percent carried interest in the future value of these licenses. The Board aims to generate shareholder value while maintaining their focus on other exploration projects. Further updates will be provided as progress is made.

Original Source: www.sharesmagazine.co.uk