Rome Resources Plc (AIM:RMR) told investors it has entered into a settlement agreement regarding a legacy dispute with the Mozambique government.
The company’s complaint followed the expropriation of Mining Concession 4623C in 2011.
Now, a settlement agreement between the company, IM Minerals Limited and the Mozambique government ends the matter.
Instead of a cash settlement, the Mozambique government has granted five new research and exploration licences to a Mozambican entity.
Rome Resources will hold a 30% ‘carried’ stake in these assets, which span close to 600 square kilometres and are expected to offer graphite and heavy mineral sands potential.
The AIM-quoted firm won’t be required to contribute to exploration costs, and it is anticipated that a ‘liquidity event’ will be sought as soon as practicable.
Rome noted that any potential cash proceeds from the monetisation of these assets will be distributed to eligible legacy shareholders of Rome, subject to expenses.
"The settlement gives the legacy shareholders, most promisingly through the graphite licences, a potential route to monetary compensation for the claim,” chief executive Paul Barratt said in a statement.
He added: “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.
“In this regard, I look forward to updating shareholders on progress relating to grades and volumes in the Bisie North Project in the near future."