Rome Resources Plc has settled a legacy dispute with the Mozambique government, securing a 30% carried stake in five new exploration licenses. This development offers potential opportunities in graphite and heavy mineral sands for legacy shareholders. The company, however, will not invest further capital into this project, maintaining its focus on existing operations in the DRC.
Rome Resources Plc announced its entry into a settlement agreement with the Mozambique government regarding its long-standing dispute over Mining Concession 4623C, which was expropriated in 2011. The agreement has resolved the issue without a cash payout; instead, the Mozambique government has provided five new research and exploration licenses to a Mozambican entity.
Rome Resources will retain a 30% carried interest in these assets, which cover nearly 600 square kilometers and are anticipated to hold graphite and heavy mineral sands opportunities. The company will not incur exploration costs, and it aims to initiate a liquidity event as soon as possible.
The firm also confirmed that any cash proceeds from the monetization of these assets will be allocated to eligible legacy shareholders, after accounting for expenses. Chief Executive Paul Barratt emphasized the significance of the graphite licenses as a possible means for shareholders to achieve compensation for the claim.
Barratt further clarified that the company will not be investing capital into this new project, reaffirming that its primary focus remains on exploring tin and copper at the Bisie North site in the Democratic Republic of the Congo (DRC). He expressed eagerness to update shareholders regarding advancements in the Bisie North Project shortly.
The settlement agreement reached by Rome Resources with the Mozambique government promises future opportunities for legacy shareholders. By securing a 30% stake in new exploration licenses, the company positions itself to potentially benefit from the development of graphite and heavy mineral sands. Despite this new venture, Rome Resources remains committed to its core focus on the Bisie North Project in the DRC, ensuring continued progress in its primary operations.
Original Source: www.proactiveinvestors.com
