Pathfinder Minerals PLC (AIM:PFP) saw its shares jump nearly 28% higher in early trade on Wednesday after the company confirmed it has signed an agreement for the sale of its wholly-owned subsidiary IM Minerals Limited.
Further to its announcements on 1 February and 22 February 2023, Pathfinder said it has entered into a conditional binding sale and purchase agreement with Acumen Advisory Group LLC (AAG) with respect to the disposal of IM Minerals and, with it, the rights to bring a claim against the government of Mozambique under the Mozambique-United Kingdom Bilateral Investment Treaty (2004), for the expropriation of Mining Concession 4623C.
It noted that completion of the disposal will result in a cash payment by AAG to Pathfinder of £2mln; a binding commitment by AAG to commence legal proceedings against the government of Mozambique in respect of the claim within three months of completion, with AAG confirming that it has secured at least US$15mln to fund the claim and will use its best endeavours to settle and/or finalise the claim within five years; and a contingent payment by AAG to Pathfinder of the greater sum of US$24mln or 20% of net recoveries from any settlement or determination of the claim.
In reaction, Pathfinder shares gained 0.13p to 0.58p.