Shares in Pathfinder minerals (LON:PFP) plunged on Monday morning, after the company issued an update on the progress regarding an ongoing permit dispute regarding its former assets in Mozambique.
The company revealed in a statement that it intends to nonetheless focus upon judicial channels to resolve a permit dispute. The dispute relates to the ownership of mining concessions it once held in Mozambique, which arose after a breakdown in negotiations with a third party.
The statement read:
“The Company received on 23 February 2018 a communication from a representative of General Jacinto Veloso, in consequence of which the Company is informed that currently there is no ongoing settlement negotiation for the return of the licences.
While the Board remains open to resuming a dialogue on a reasonable basis, it is focused on enforcing the Company’s rights through the judicial process and is confident in the Company’s legal position.”
Last week shares similarly plummeted as much as 14 percent, following a company announcement on its progress regarding the licenses.
As of currently, they are held by former Pathfinder partner, General Jacinto Veloso, who also served as a government minister in Mozambique.
Mr Veloso acquired the licenses from a subsidiary company back in 2011.
However, in 2012, the English High Court ruled against Veloso after it reached the conclusion that Pathfinder had validly acquired its shares in the licence holding subsidiary.
Consequently, the firm is now attempting to recover the licences for the region through a recognition of the English Court judgement by the Mozambique Supreme Court, or alternatively, from negotiations with Veloso.
Shares in Pathfinder are currently trading down 35.52 percent as of 11.36AM (GMT), as investors react to the latest update.
Pathfinder Minerals is a natural resource exploration company that is listed on the AIM market on the London Stock Exchange.
The firm is primarily focused in mining minerals such as ilmenite, rutile and zircon in Mozambique.