Rome Resources Plc has settled its claim against the Mozambique government concerning the expropriation of Mining Concession 4623C. The settlement includes five new exploration licences, with Rome receiving a 30% carried interest. This development follows prior transfers of the claim among various entities. The company aims to explore the potential for financial returns for shareholders through these new licences while continuing its primary exploration efforts in the DRC.
On March 20, 2025, Rome Resources Plc announced it had reached a settlement with the Mozambique government regarding the expropriation of Mining Concession 4623C. The company, previously known as Pathfinder Minerals plc, will receive a 30% carried interest in five new exploration licences designated for usage by a Mozambican company nominated by IM Minerals Limited. This agreement reflects a move towards resolution of the Company’s historical claim regarding events from 2011.
The claim for the mining concession was transferred from Pathfinder to Acumen Advisory Group LLC in August 2023, and subsequently to Luangwa Resources LLC in January 2024. The Mozambique government had initially justified the concession’s expropriation due to failures in management safeguards, leading to negotiations that produced replacement licences instead of a cash settlement.
The settlement includes several significant new licences with both graphite and heavy mineral sand potential. Specifically, the new licences comprise two graphite areas totaling 32,860 hectares and three heavy mineral sands licences covering 26,973 hectares. Collectively, these licences encompass around 59,733 hectares, akin to the area of the Isle of Man.
Although Luangwa will oversee the licences, Rome will not incur any exploration costs and will receive a fixed 30% interest. Any future financial gains, subject to conditions, will exclude certain costs if less than $7 million is realized. Previously communicated plans outline compensatory arrangements for shareholders through a “Bonus Preference Share” linked to any award stemming from this claim.
Paul Barrett, CEO of Rome Resources, expressed optimism about the settlement, highlighting the potential for financial returns through the graphite licences. He also reaffirmed the company’s commitment to focusing on its core tin and copper exploration at the Bisie North site in the DRC, signaling a strategic direction moving forward.
In summary, Rome Resources Plc has successfully settled its claim against the Mozambique government concerning the expropriated Mining Concession 4623C. The settlement includes significant new exploration licences, with provisions for carrying interest and potential returns to shareholders. The leadership at Rome expresses a commitment to maximizing these new opportunities while maintaining focus on their primary projects in the Democratic Republic of the Congo.
Original Source: www.sharesmagazine.co.uk
