Rome Resources Plc has reached a settlement with the Mozambique government, resolving a dispute over the expropriation of a mining concession. The agreement grants five new licenses and a 30% stake in them to Rome, allowing for future returns for legacy shareholders without further exploration costs. The company’s primary focus remains the Bisie North Project in DRC, with updates expected soon.
Rome Resources Plc has recently announced a settlement agreement concerning its long-standing dispute with the Mozambique government regarding the expropriation of Mining Concession 4623C in 2011. This agreement resolves the dispute without a cash settlement, resulting in the Mozambique government awarding five new research and exploration licenses to a local entity.
Rome Resources will maintain a 30% ‘carried’ stake in these licenses, covering nearly 600 square kilometers with potential for graphite and heavy mineral sands. Notably, the firm will not bear any exploration costs associated with these assets. The company aims to pursue a liquidity event as soon as feasible.
Further, Rome has indicated that any potential cash proceeds from future asset monetization will be allocated to eligible legacy shareholders, after accounting for expenses. Chief Executive Paul Barratt highlighted the agreement’s significance, stating it presents a promising compensation route for shareholders via the graphite licenses. He emphasized, however, that the company’s primary focus will remain on exploring for tin and copper at the Bisie North site in the Democratic Republic of the Congo, with updates on that project forthcoming.
The settlement between Rome Resources and the Mozambique government marks a significant milestone in addressing the company’s legacy disputes. With a 30% stake in promising new exploration licenses, legacy shareholders could potentially benefit from future monetary compensation without incurring additional costs. As the company prioritizes its focus on the Bisie North Project, shareholders can anticipate updates on progress in that venture while keeping an eye on the developments regarding the Mozambique assets.
Original Source: www.proactiveinvestors.co.uk
