Rome Resources Plc has settled a dispute with the Mozambique government, receiving five exploration licenses in exchange for a legacy claim. The company holds a 30% carried interest, with no cost obligations. Financial benefits will go to eligible legacy shareholders, while the focus remains on its tin and copper exploration in the DRC.
Rome Resources Plc has announced a settlement agreement regarding a legacy dispute with the Mozambique government over the expropriation of Mining Concession 4623C, a matter stemming from 2011. This agreement, reached with IM Minerals Limited and the Mozambique government, has resulted in the issuance of five new research and exploration licenses to a Mozambican entity.
The new assets, covering nearly 600 square kilometres, are believed to contain graphite and heavy mineral sands potential. Notably, Rome Resources will retain a 30% carried interest in these assets without being responsible for any exploration costs. The firm anticipates pursuing a liquidity event as promptly as possible.
Rome Resources has indicated that any financial returns from these assets will be allocated to eligible legacy shareholders, minus relevant expenses. Chief Executive Paul Barratt remarked that this settlement offers a promising possibility for legacy shareholders to secure monetary compensation through the graphite licenses.
Barratt clarified that while this settlement is advantageous for legacy shareholders, Rome Resources will not be investing any capital into this project. Instead, the company’s primary focus remains on the exploration of tin and copper at the Bisie North site in the Democratic Republic of Congo, with updates on progress concerning grades and volumes to be provided in due course.
In conclusion, Rome Resources Plc has settled a long-standing dispute with the Mozambique government, resulting in new exploration licenses that could provide future financial returns for legacy shareholders. The strategic decision to retain a 30% interest without upfront costs signifies a calculated approach to potentially monetize these assets. However, the company’s primary focus remains its ongoing projects in the Democratic Republic of Congo.
Original Source: www.proactiveinvestors.com
