Rome Resources Plc has settled a dispute with the Mozambique government, leading to the receipt of five new exploration licenses. The company will hold a 30% stake in these licenses, targeted for graphite and heavy minerals, without incurring exploration costs. Future cash proceeds from these assets are expected to benefit legacy shareholders. The company’s ongoing focus remains on the Bisie North site in the DRC.
Rome Resources Plc has reached a settlement agreement concerning a lingering dispute with the Mozambique government over the expropriation of Mining Concession 4623C, which occurred in 2011. This agreement, involving both Rome Resources and IM Minerals Limited, resolves the issue without any cash payout from the government.
As a substitute for cash, the Mozambique government has awarded five new research and exploration licenses to a Mozambican entity. Rome Resources is set to maintain a 30% carried interest in these newly granted assets, which cover approximately 600 square kilometers, indicating promising potential for graphite and heavy mineral sands.
Importantly, Rome Resources will not bear any exploration costs associated with these new licenses. The company anticipates a liquidity event will be pursued promptly, which could generate cash proceeds for eligible legacy shareholders, subject to certain expenses.
Chief Executive Paul Barratt emphasized the significance of the settlement for legacy shareholders, indicating that the graphite licenses could provide a path to financial compensation. He further clarified that the company will not invest any financial capital in this new venture, reaffirming that their primary focus remains on the exploration of tin and copper at the Bisie North site in the Democratic Republic of the Congo.
Barratt expressed optimism about updating shareholders soon regarding the progress of the Bisie North Project, particularly concerning grades and volumes.
The settlement agreement with the Mozambique government presents a promising opportunity for Rome Resources’ legacy shareholders through the potential monetization of newly acquired exploration licenses. While the company will not be financially investing in this new area, it maintains its commitment to its main focus on the Bisie North Project in the DRC. This strategic decision allows legacy shareholders to anticipate possible future financial returns.
Original Source: www.proactiveinvestors.com
