Rome Resources Plc has reached a settlement with the Mozambique government regarding a legacy dispute over Mining Concession 4623C. The agreement grants the company a 30% ‘carried’ interest in five new exploration licenses. This arrangement allows Rome Resources to benefit from potential asset monetization without incurring exploration costs, while focusing on its main tin and copper project in the DRC.
Rome Resources Plc has informed investors of a recent settlement agreement concerning a legacy dispute with the government of Mozambique. This dispute originated from the expropriation of Mining Concession 4623C back in 2011. The newly reached agreement, which involves both IM Minerals Limited and the Mozambique government, has successfully resolved the issue at hand.
Rather than receiving a cash payout, Rome Resources will benefit from five new research and exploration licenses granted to a Mozambican entity. The company will hold a 30% ‘carried’ interest in these licenses, which encompass approximately 600 square kilometers and are anticipated to have significant potential for graphite and heavy mineral sands.
Importantly, Rome Resources will not be responsible for any exploration costs associated with these assets. The company is also planning to pursue a ‘liquidity event’ as soon as possible. Additionally, any future monetary returns from these assets will be shared among eligible legacy shareholders, after accounting for expenses.
Chief Executive Paul Barratt remarked on the settlement’s potential benefits for legacy shareholders, emphasizing the opportunity for compensation through the graphite licenses. He stressed that Rome Resources would not invest any financial resources into this project, reaffirming that the company’s primary focus remains on the exploration of tin and copper at the Bisie North site in the Democratic Republic of Congo.
In conclusion, Rome Resources’ settlement with the Mozambique government marks a significant development for legacy shareholders, providing them with the potential for future monetary compensation through new exploration licenses. The company is expected to hold a 30% ‘carried’ stake in this promising venture without incurring exploration costs, while maintaining its strategic focus on the Bisie North project. The commitment to updating shareholders on the Bisie North Project reinforces Rome Resources’ dedication to transparency and progress in its core operations.
Original Source: www.proactiveinvestors.co.uk
