Rome Resources Plc has reached a settlement with the Mozambique government concerning the expropriation of mining concession 4623C from 2011, involving five new exploration licences. Rome will hold a 30 percent carried interest in these licences, which cover a total of approximately 59,733 hectares. The settlement marks a positive yet non-cash resolution amid ongoing exploration commitments in the DRC.
On March 20, 2025, Rome Resources Plc announced a settlement concerning its claim against the Mozambique government regarding the expropriation of mining concession 4623C in 2011. The agreement involves IM Minerals Limited and acknowledges the legacy claim that arose following the concession’s expropriation. Rome Resources, previously known as Pathfinder Minerals Plc, is focused on tin and base metals exploration in the DRC.
Under the terms of the settlement, the Mozambique government will grant five new research and exploration licences to a Mozambican company nominated by IM. Rome will maintain a 30 percent carried interest in any future value derived from these new licences.
The background to this claim includes its transfer from Pathfinder to Acumen Advisory Group LLC, and subsequently to Luangwa Resources LLC. Negotiations revealed that the Mozambique government justified the expropriation by citing prior management failures at Rome Resources, leading to a lack of cash settlement offers.
The New Licences consist of areas designated for graphite and heavy mineral sands, totaling approximately 59,733 hectares. Two of the licences are linked to active graphite mining initiatives, which are expected to generate cash returns, while others require further development.
Although Luangwa will oversee the New Licences, Rome will have a passive 30 percent stake and will not bear the costs associated with exploration. The agreement outlines conditions for cash distributions to Rome, depending on the realization of value from the New Licences.
Additionally, legacy shareholders from the former Pathfinder will receive Bonus Preference Shares, granting them a preferential dividend tied to any damages awarded from the claim. While the Company is pleased with the settlement’s resolution, the Board acknowledges potential disappointment among shareholders concerning the absence of a cash settlement.
Chief Executive Officer Paul Barrett expressed optimism regarding the settlement, highlighting the potential for the graphite licences to provide monetary compensation. He reaffirmed Rome’s commitment to exploration for tin and copper in the DRC, stating that financial investment in the current settlement is not planned. Further updates are anticipated as developments unfold.
The settlement of the claim against the Mozambique government by Rome Resources Plc marks a significant step for the Company, establishing future exploration opportunities through newly granted licences. While shareholders may be disappointed by the lack of immediate cash compensation, the arrangements provide a pathway for potential monetary returns. Rome Resources will remain focused on its primary exploration projects in the DRC as it seeks to unlock value from the New Licences.
Original Source: www.sharesmagazine.co.uk
