Rome Resources Plc has reached a settlement with the Mozambique government regarding a 2011 expropriation case. The company will receive five exploration licenses in Mozambique, holding a 30% stake with no exploration cost obligations. Future cash proceeds from these assets will be allocated to legacy shareholders, while the company maintains its primary focus on another project in the DRC.
Rome Resources Plc, operating on the AIM exchange under the ticker RMR, has announced a settlement regarding a longstanding dispute with the government of Mozambique, rooted in the expropriation of Mining Concession 4623C in 2011. This new agreement involves Rome Resources, IM Minerals Limited, and the Mozambican government, which has now paved the way for the issuance of five new research and exploration licenses to a local Mozambican entity.
With this settlement, Rome Resources will hold a 30% carried interest in these licenses, which encompass nearly 600 square kilometers believed to contain graphite and heavy mineral sands. Notably, the company will not bear any exploration costs associated with these assets, and it is expected that a liquidity event will be pursued promptly.
The company has committed to distributing any future cash proceeds generated from these assets to eligible legacy shareholders, following the deduction of associated expenses. Chief Executive Paul Barratt remarked, “The settlement gives the legacy shareholders, most promisingly through the graphite licences, a potential route to monetary compensation for the claim.”
He further emphasized, “I must emphasise that the company will not be investing financial capital into this project and the exploration for tin and copper at the Bisie North site in the DRC remains our single focus going forward. I look forward to updating shareholders on progress relating to grades and volumes in the Bisie North Project in the near future.”
In conclusion, the settlement between Rome Resources and the Mozambique government clarifies the situation regarding Mining Concession 4623C while providing legacy shareholders a potential avenue for returns. The acquisition of research and exploration licenses in Mozambique demonstrates promising opportunities without financial burden on the company. The management remains focused on their primary project in the DRC, and further updates on developments are anticipated soon.
Original Source: www.proactiveinvestors.co.uk
