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Pathfinder Minerals appeal dismissed by Mozambique Supreme Court
11:48 CAT | 19 Oct 2017
Pathfinder Minerals PLC on Thursday said the Mozambique Supreme Court has dismissed an appeal in its ongoing legal battle to restore its licensed area, and it is continuing work on a planned out-of-court alternative resolution.
The company has been locked in a dispute to restore licensed licensed areas in Mozambique which were appropriated from a subsidiary company in 2011 and given to Pathfinder’s former partner, General Jacinto Veloso.
The company said Thursday its ‘harmonisation of laws’ appeal was dismissed, but noted a successful appeal would not have affected the previous decision of the Mozambique not to recognise the English High Court’s ruling that Pathfinder legitimately owned the licence-holding subsidiary. Pathfinder is awaiting a decision on whether or not the English court’s ruling will be recognised.
“The company is advised that the Supreme Court is not bound to follow its previous decisions, although it would not be appropriate to speculate on the likely outcome of the application for recognition of the substantive English judgement, nor is it known when that application will be determined by the Mozambique Supreme Court,” Pathfinder said.
In the meantime Pathfinder said it is working on enhancing the prospect of an alternative resolution that does not rely on the courts.
In September, it had said it was in discussions with Veloso and the government of Mozambique for an extra-judicial solution, and the company confirmed it is preparing the framework of an agreement with Veloso that would, if successful, result in the restoration of the licensed areas to Pathfinder.
“The terms attached to a potential resolution remain fluid and there is no certainty of a successful outcome to these discussions. As Pathfinder is able to control only its role in these discussions, the company has no visibility over the timing of which a resolution may be achieved. The board is, however, encouraged by the progress being made towards an alternative resolution and is optimistic that one can be concluded,” Pathfinder said.
Shares in Pathfinder were up 9.5% at 1.04 pence Thursday following the annoucement.
By Hana Stewart-Smith
Source: Alliance News / Interactive Investor
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