Rome Resources has reached a settlement with the Mozambique government regarding a prior expropriation. The agreement provides five new exploration licenses, with Rome holding a 30% stake without exploration cost obligations. Any cash proceeds will be awarded to eligible legacy shareholders. The company’s focus remains on the Bisie North Project in the DRC.
Rome Resources Plc has announced a settlement with the Mozambique government concerning a legacy issue related to the expropriation of Mining Concession 4623C from 2011. The settlement involves a partnership with IM Minerals Limited and allows Rome Resources to secure five new research and exploration licenses through a Mozambican entity, rather than pursuing a cash settlement.
Under the terms of the agreement, Rome Resources will retain a 30% carried interest in these licenses, which encompass approximately 600 square kilometers, identified for their potential in graphite and heavy mineral sands. Notably, Rome will not incur costs for exploration, with a liquidity event anticipated as soon as possible.
The company emphasized that any cash proceeds from these asset monetizations will be distributed to eligible legacy shareholders, after covering related expenses. Chief Executive Paul Barratt emphasized the significance of this settlement as a means for legacy shareholders to possibly receive compensation through the graphite licenses.
Barratt reiterated that Rome Resources will not invest financial resources into this project, as the company’s primary emphasis remains on the exploration of tin and copper at the Bisie North site in the Democratic Republic of the Congo. He expressed eagerness to provide updates on the Bisie North Project’s progress regarding grades and volumes shortly.
In summary, Rome Resources has successfully settled a legacy dispute with the Mozambique government, paving the way for potential future financial returns for legacy shareholders through exploration licenses. The strategic focus remains on the Bisie North Project, with no new financial investment planned in the Mozambique assets. This development creates an opportunity for Rome Resources to enhance its shareholder value while prioritizing ongoing exploration efforts.
Original Source: www.proactiveinvestors.co.uk
