Rome Resources Plc has settled a legacy claim with the Mozambique government concerning the expropriation of mining concession 4623C, receiving new exploration licenses in lieu of cash compensation. The settlement includes five new licenses totaling 59,733 hectares. Shareholders may benefit from a proposed dividend linked to any potential damages from the claim.
On March 20, 2025, Rome Resources Plc announced it has reached a settlement agreement with IM Minerals Limited and the Mozambique government regarding a legacy claim over the expropriation of mining concession 4623C, originally taken in 2011. This announcement, disseminated via a Regulatory Information Service, now constitutes public information under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
As part of the agreement, the Mozambique government will issue five new research and exploration licenses to a Mozambican company appointed by IM. Rome Resources is set to acquire a 30 percent carried interest in the future value of these licenses. This reflects a strategic shift from the Company’s former identity as Pathfinder Minerals plc until July 2024.
The claim was reportedly weakened by the Mozambican government’s justification for the expropriation, citing previous management’s insufficient safeguards. Consequently, the government opted for new licenses instead of cash compensation, prolonging negotiation efforts.
The five new licenses encompass a total area of approximately 59,733 hectares, with significant portions linked to active graphite mining projects. A brief outline of these licenses includes:
1. Licence No. 5197, Area 1 – 18,857 ha
2. Licence No. 5197, Area 2 – 14,003 ha
3. Licence No. 5186 – 14,340 ha
4. Licence No. 11344 – 11,673 ha
5. Licence No. 9844 – 860 ha
Luangwa Resources LLC retains control over the New Licences allowing Rome to maintain a passive 30 percent interest without financial contributions towards exploration. Details regarding any cash distributions arising from the New Licences creation will consider Luangwa’s reasonable costs.
Shareholders entitled to the “Bonus Preference Share” will receive a preferential dividend equivalent to any damages awarded derived from the claim. However, should the Company secure no award, no payment shall be made to these shareholders.
While Rome’s directors view the settlement positively, they acknowledge potential disappointment due to the non-cash nature of the agreement. The Company will strive to maximize value from the New Licences and plans to report further developments.
Paul Barrett, the CEO of Rome Resources, affirmed the opportunity for legacy shareholders to achieve monetary compensation through these graphite licenses while emphasizing a strong focus on the Bisie North Project in the DRC for tin and copper exploration without further investment into the New Licences.
In summary, the Company will continue to relay pertinent updates to stakeholders as developments arise.
For further inquiries, investors are encouraged to use the investor hub.
The settlement with the Mozambique government allows Rome Resources Plc to transition from a legacy claim into future opportunities via new exploration licenses. While the Company faces challenges regarding the non-cash settlement, it has outlined a plan to leverage these new licenses for shareholder benefit. CEO Paul Barrett’s focus on maintaining a strategic direction toward the Bisie North Project underscores the Company’s commitment to growth, despite prior setbacks. Regular updates are anticipated as progress is made.
Original Source: www.sharesmagazine.co.uk
