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Pathfinder Minerals PLC on Wednesday said it extended its option agreement with Acumen Advisory Group LLC over the sale of its subsidiary IM Minerals Ltd until January 31.
The Mozambique-focused natural resources explorer said the option agreement was extended to enable Acumen Advisory to complete due diligence on the proposed transaction.
This is because the option agreement includes the rights to bring a claim against the Mozambique government for the expropriation of mining concession 4623C, under the 2004 Mozambique-United Kingdom Bilateral Investment Treaty.
Pathfinder launched a legal claim against the Mozambique government for the loss of a licence in 2011, as the company said it facilitated the expropriation from Pathfinder of mining concession 4623C.
‘We continue to work with Acumen Advisory towards the potential monetisation of the company’s valuable claim against the government of Mozambique,’ said Pathfinder Chief Executive Officer Peter Taylor.
On Tuesday, Pathfinder announced a placing to raise £500,000 via 100 million new shares at a price of 0.50 pence per share. It said the fundraise was for for general working capital purposes and to repay its loan facility of up to £160,000 plus interest.
It will also issue warrants to the Financial Conduct Authority for over 5 million shares with an exercise price of 0.50p for two years.
Shares in Pathfinder were down 8.6% to 0.43p each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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