Rome Resources Secures Mozambique Settlement, Boosting Future Returns for Shareholders

Rome Resources Plc has reached a settlement with the Mozambique government concerning a legacy dispute, resulting in five new exploration licenses. The company will hold a 30% interest in these assets without needing to finance exploration costs. Any future cash proceeds will be distributed to eligible legacy shareholders. The company will focus on its core project in the DRC, with updates expected soon.

Rome Resources Plc has recently informed its investors about a settlement agreement concerning a legacy dispute with the government of Mozambique. This dispute originated from the expropriation of Mining Concession 4623C, which occurred in 2011. The new settlement agreement, which involves Rome Resources, IM Minerals Limited, and the Mozambique government, effectively resolves this issue.

Instead of a direct cash settlement, the government has granted five new research and exploration licenses to a Mozambican entity. Rome Resources will possess a 30% carried interest in these licenses, covering nearly 600 square kilometers that are anticipated to yield graphite and heavy mineral sands. This arrangement allows Rome Resources to avoid upfront exploration costs while seeking a liquidity event promptly.

The firm noted that any cash proceeds from these assets’ monetization will be allocated to eligible legacy shareholders, with expenses deducted. Chief Executive Paul Barratt remarked on the settlement’s importance, particularly emphasizing the potential for monetary compensation from the graphite licenses for legacy shareholders.

He also clarified that the company would not invest any financial capital into this project. Rome Resources’ primary focus will remain on exploration activities for tin and copper at the Bisie North site in the Democratic Republic of the Congo. Mr. Barratt expressed optimism about updating shareholders on the progress of the Bisie North Project regarding grades and volumes in the near future.

The settlement agreement between Rome Resources and the Mozambique government marks a significant resolution to a long-standing dispute, potentially benefiting legacy shareholders through future asset monetization. The strategic decision not to invest financial resources directly into this new venture allows the company to concentrate on its core exploration efforts in the DRC. The developments regarding the Bisie North Project will be crucial for stakeholders moving forward.

Original Source: www.proactiveinvestors.co.uk