Proactive Investors - Run By Investors For Investors

Pathfinder Minerals shares soar as it wins dispute with Mozambique army general

A favourable court ruling in Mozambique sparked a sharp rally for Pathfinder
Pathfinder Minerals shares soar as it wins dispute with Mozambique army general

Investors in Pathfinder Minerals (LON:PFP) had a cracking start to the week as its shares rallied by more than 700% on a favourable court ruling in Mozambique.

The dispute dates back to 2010, when Pathfinder subsidiary IM Minerals bought virtually all (99.99% to be exact) of Companhia de Naburi (CMDN), which holds licences for a mineral sands project in the country.

At a meeting in 2011, held without Pathfinder’s knowledge, resolutions were apparently passed that dismissed Pathfinder chief Nicholas Trew and founding shareholder Gordon Dickie as directors of CMDN.

A decision was then made to cancel the shares in CMDN held by IM Minerals and reissue them to General Veloso, ex-minister of state security in Mozambique and a former director at the company and Diogo Cavaco. 

Veloso claimed that Pathfinder Minerals never legitimately acquired CMDN.

Pathfinder won a London court case in 2012, which said it did validly acquire CMDN and granted a permanent injunction restraining General Veloso from taking any steps to interfere its rights of ownership of CMDN.

However, Veloso said Pathfinder broke Mozambique law by going to a London court.

Today, a court in Maputo, Mozambique ruled in favour of IM Minerals.

The judge said IM Minerals did not lose its status as a shareholder so CMDN had a right to be notified of and to take part in the December 2011 EGM.

Speaking after the judgment, Nick Trew, said: "Once again the Maputo courts have confirmed IMM's status as shareholder in CMDN. 

“I would urge General Veloso and Diogo Cavaco to respect the rule of law and to accept the Court's findings so that the parties can resume development of the project for the benefit of the company, its shareholders and the people of Mozambique."

View full PFP profile View Profile

Pathfinder Minerals Timeline

Related Articles

map of projects and drill rig picture
January 24 2019
The company is focused on the Redmoor Tin-Tungsten Project and Otago Gold Project.
Drilling activity at Kharmagtai Copper-Gold Project in Mongolia
January 14 2019
The now validated data and mineral resource update will be used in an upcoming scoping study.
EV being charged in European city
March 03 2019
Drilling, metallurgical test work and pilot processing for the Wolfsberg DFS are on the company’s agenda in 2019.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use