Rome Resources Settles Mozambican Dispute, Paving Way for Legacy…

Rome Resources Plc has settled a dispute with the Mozambique government concerning the expropriation of Mining Concession 4623C. Through the settlement, the company gains a 30% carried stake in five new exploration licenses without incurring exploration costs, with future proceeds intended for legacy shareholders. CEO Paul Barratt affirmed the commitment to focus on ongoing tin and copper exploration in the DRC while updating on mining projects.

Rome Resources Plc has successfully reached a settlement regarding a dispute with the Mozambique government concerning the expropriation of Mining Concession 4623C, which occurred in 2011. This agreement, finalized between Rome Resources, IM Minerals Limited, and the Mozambique government, resolves the prior conflict without a cash settlement.

As part of the settlement, the Mozambique government has issued five new research and exploration licenses to a Mozambican entity, in which Rome Resources will maintain a 30% carried interest. These licenses cover approximately 600 square kilometers and present opportunities for graphite and heavy mineral sands extraction, but Rome Resources will not bear exploration costs.

The company plans to pursue a liquidity event to monetize these assets, with any cash proceeds allocated to eligible legacy shareholders after covering expenses. Chief Executive Paul Barratt commented on the potential benefits for legacy shareholders, stating that the graphite licenses offer a promising avenue for compensation related to the claim.

Barratt clarified that Rome Resources will not allocate financial resources to this new project, emphasizing that the company’s primary focus remains on the exploration of tin and copper at the Bisie North site in the Democratic Republic of the Congo. He expressed anticipation for future updates regarding the progress of the Bisie North Project.

Rome Resources Plc’s settlement with the Mozambique government signifies a pivotal moment for its legacy shareholders, potentially providing them with future financial returns through new exploration licenses. With this agreement, Rome Resources positions itself strategically while maintaining its focus on other significant mining projects in the Democratic Republic of the Congo. The outlook remains optimistic, especially for shareholders waiting for potential compensation linked to graphite and mineral extraction opportunities in Mozambique.

Original Source: www.proactiveinvestors.com