Rome Resources Plc has reached a settlement with the Mozambique government regarding a legacy dispute by securing five exploration licenses. The company will hold a 30% stake without contributing to costs, and any cash proceeds will be distributed to eligible legacy shareholders. The focus remains on the Bisie North Project in the DRC.
Rome Resources Plc has reached a settlement agreement concerning a legacy dispute with the Mozambique government, originating from the expropriation of Mining Concession 4623C in 2011. Under this agreement, which involves both Rome Resources and IM Minerals Limited, the Mozambique government will provide five new research and exploration licenses to a Mozambican entity.
Rome Resources will maintain a 30% ‘carried’ stake in these licenses, covering nearly 600 square kilometers that are believed to have potential for graphite and heavy mineral sands. The company won’t incur exploration costs and anticipates pursuing a ‘liquidity event’ quickly.
Any cash proceeds from the monetization of these new assets will be distributed among eligible legacy shareholders, subject to associated expenses. Chief Executive Paul Barratt expressed that this settlement presents a possible avenue for monetary compensation for legacy shareholders through the graphite licenses.
Barratt emphasized that the company will not invest financial capital into this project and that its primary focus will remain on exploration for tin and copper at the Bisie North site in the Democratic Republic of Congo. He looks forward to providing updates to shareholders regarding advances in the Bisie North Project shortly.
The settlement agreement between Rome Resources, IM Minerals Limited, and the Mozambique government paves the way for future exploration opportunities without financial input from Rome. The potential benefits for legacy shareholders could be significant, depending on successful monetization of the new assets linked to graphite and heavy mineral sands. Rome Resources will continue its strategic focus on the Bisie North Project for tin and copper.
Original Source: www.proactiveinvestors.com
