Proactive | 29 June 2021
Pathfinder Minerals boosted by talks over licence dispute
By Nick Fletcher
Pathfinder Minerals PLC (LON:PFP) has gained ground after some progress towards settling a dispute in Mozambique.
The company is at odds with the country’s government over the ownership of a mining licence, concession 4623C, and unless it is settled, it plans to refer the matter to the International Centre for Settlement of Investment Disputes.
But it has now held a virtual meeting with the new title holder of the licence, TZM Resources S.A., to tell the business it could lose its investment in the licence depending on the outcome of the dispute.
While noting it was a dispute between Pathfinder and the state, the two sides agreed to keep a dialogue going and to explore alternative solutions to resolve the issue.
Pathfinder said these alternatives included TZM retaining the licence and compensating Pathfinder for its loss.
Pathfinder chief executive Peter Taylor said: "We believe the opportunity to resolve this matter and the consequences of failing to do so are clear to the Government of Mozambique and to TZM. Whilst we reserve our position with respect to the treaty claim, constructive dialogue with TZM is a positive development and we will continue to engage with them."
Pathfinder shares have put on 9.59% to 0.79p.