Rome Resources PLC has reached a settlement with the Mozambique government regarding a legacy dispute from the expropriation of Mining Concession 4623C. The agreement gives the company a 30% carried stake in new licences, enabling potential returns for legacy shareholders. The firm will not invest additional capital in this project as it continues to focus on the Bisie North site for tin and copper exploration.
Rome Resources Plc has informed investors of a new settlement with the Mozambique government regarding a legacy dispute. This dispute originated following the expropriation of Mining Concession 4623C in 2011. The settled agreement, which involved both the company and IM Minerals Limited, allows for the establishment of five new research and exploration licences provided to a Mozambican entity.
The new assets will allow Rome Resources to maintain a 30% carried interest while not incurring exploration costs. Encompassing nearly 600 square kilometres, the licences are expected to yield potential opportunities in graphite and heavy mineral sands. The company anticipates seeking a liquidity event for these assets imminently.
Any cash proceeds arising from the monetisation of these assets will be allocated among eligible legacy shareholders, subsequent to the deduction of expenses. Chief Executive Paul Barratt stated, “The settlement gives the legacy shareholders, most promisingly through the graphite licences, a potential route to monetary compensation for the claim.”
Barratt added that Rome Resources will not be investing capital into this new venture and will instead concentrate on the exploration of tin and copper at the Bisie North site in the Democratic Republic of the Congo. He expressed eagerness to update shareholders on advancements related to grades and volumes at the Bisie North Project soon.
The settlement agreement between Rome Resources and the Mozambique government represents a significant step forward for legacy shareholders, offering potential financial compensation through new exploration licences. Though the company will not invest in these projects, the focus remains on the Bisie North site. The proactive approach demonstrates Rome Resources’ commitment to navigating its legacy disputes while seeking sustainable returns for its shareholders.
Original Source: www.proactiveinvestors.co.uk
