3 June 2019
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Corporate Update &
Pathfinder is pleased to provide a further update on its progress towards restoring an interest in Mining Concession 4623C (the "Licence") in Mozambique which, it is envisaged, would involve it settling all current and pending legal disputes associated directly and indirectly with the Licence.
On 10 April 2019, the Company announced that the Board was evaluating multiple transaction structures, taking into account commercial and regulatory factors, through which the Company would re-establish an interest in the Licence. The Company has received a number of proposals in recent weeks involving relevant interested parties; and in this regard the board of directors of Pathfinder (the "Board") has requested further clarity from those counterparties before it makes a decision as to whether to proceed with any one of these.
Pathfinder is pleased to announce that these discussions are continuing to progress in a positive way with potential counterparties conducting their own asset-level due diligence. Should any of these ultimately conclude, the Board anticipates that the effect on the business would likely be transformational.
Further information on the Licence
The Licence contains the Moebase and Naburi heavy mineral sands deposits and covers approximately 32,000 hectares of land on the Indian Ocean coast of the Zambezia province of Mozambique, containing ilmenite, rutile and zircon. As announced on 10 April 2019, a 2019 Scoping Study on the Licence delivered an estimated pre-tax net present value at a 10 per cent discount rate of US$1.05 billion; with projected annual revenues of US$323 million over a mine life of 30 years.
Response to media speculation
The Company notes an article which appeared in the press yesterday which suggested, inter alia, that Pathfinder was considering an equity fundraise. The Board continues to evaluate its funding requirements and will update the market in due course. The same article went onto reference action being taken by certain third parties in respect of the Licence. Whilst Pathfinder has received correspondence in relation to certain claims, it has recently responded, via its lawyers, noting that the claims relate to parties other than the Company.
Pathfinder is pleased to announce the appointment of John Taylor as Chief Executive Officer and a director of the Company with immediate effect. Mr Taylor replaces Scott Richardson Brown who is stepping down from his role as Chief Executive Officer and as a director of the Company with immediate effect to focus on his other business commitments.
Mr Taylor's most recent focus has been on assisting small cap listed companies with their development. Prior to this, he spent eighteen months working in private equity backed portfolio companies, driving operational turnaround initiatives and implementing costing systems. He spent over 20 years in the Army Air Corps, leaving in 2015 with the rank of Leiutenant Colonel. Between 2013 and 2015 he was senior strategic communications ofﬁcer for the Ministry of Defence.
He is a non-executive director of Two Shields Investments Plc, an AIM quoted technology investment company, a non-executive director of Bidstack Group plc, an AIM quoted in-game advertising company, and a non-executive director of Sabien Technology Group plc, an AIM-quoted provider of energy reduction technologies.
Further disclosures on Mr Taylor as required under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies are included in the appendix below.
In anticipation of a deal progressing in Mozambique, the Board indents to increase the number of non-executive directors in due course and is currently identifying and evaluating suitable candidates.
Sir Henry Bellingham, Non-executive Co-Chairman, commented:
"I am very encouraged by the progress being made towards restoring an interest in the key Licence in Mozambique that has tested the patience of shareholders for some years now. I am optimistic that with the options being proposed to us that we are progressing towards the point whereby that patience could be rewarded."
"I would like to thank Scott for his considerable efforts in helping the Company get to this stage and am sad to see him leave. I welcome John Talyor on board and have every confidence in the Board to take this to the next key milestone."
Pathfinder Minerals Plc
John Taylor, Chief Executive Officer
Tel. +44 (0)20 3440 7775
Strand Hanson Limited (Nominated & Financial Adviser and Broker)
James Spinney / Ritchie Balmer / Jack Botros
Tel. +44 (0)20 7409 3494
Vigo Communications (Public Relations)
Ben Simons / Simon Woods
Tel. +44 (0)20 7390 0234
Email. [email protected]
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
Appendix - Appointment of John Taylor
John Edward Taylor (age 47), has held the following directorships and/or partnerships in the past five years:
AS Group Ventures Inc
Bidstack Group Plc
Sabien Technology Group Plc
Two Shields Investments Plc
Ugly Panda LLP
Mr. Taylor is interested in 300,000 Ordinary Shares, representing, approximately 0.10 per cent. of the Company's issued share capital.
There is no further information to be disclosed in relation to Mr Taylor's appointment pursuant to AIM Rule 17 or Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.
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