Rome Resources Plc has settled a legacy dispute with the Mozambique government, gaining a 30% stake in five new exploration licenses without incurring exploration costs. Cash proceeds from these assets will benefit legacy shareholders, while the firm maintains focus on the Bisie North Project for tin and copper exploration.
Rome Resources Plc has announced a significant development regarding a settlement agreement related to a legacy dispute with the Mozambique government concerning the expropriation of Mining Concession 4623C in 2011. This agreement ultimately resolves the dispute and is marked by the issuance of five new research and exploration licenses to a Mozambican entity.
Rome Resources will obtain a 30% carried stake in these new assets, which cover an area of nearly 600 square kilometers, indicating potential for graphite and heavy mineral sands. The company will not bear exploration costs, and plans to pursue a liquidity event in the near future.
Potential cash proceeds derived from the monetization of these newly acquired assets will be allocated to eligible legacy shareholders, subject to expenses. Chief Executive Paul Barratt remarked that this settlement gives legacy shareholders a potential route to compensation through the graphite licenses.
He further noted that Rome Resources will not invest financial capital into this project, reiterating that their primary focus remains on exploring for tin and copper at the Bisie North site in the Democratic Republic of the Congo, with upcoming updates on that front forthcoming.
In conclusion, Rome Resources has successfully negotiated a settlement with the Mozambique government, which could yield future benefits for its legacy shareholders through new exploration licenses. The retained 30% stake in potentially lucrative resources presents a promising opportunity without immediate financial investment from the company. However, the primary strategic focus will continue to be on the Bisie North Project, signaling a commitment to advancing that initiative alongside this new development.
Original Source: www.proactiveinvestors.com
