Rome Resources Settles Mozambique Dispute, Secures Exploration Licenses

Rome Resources Plc has settled a legacy dispute with the Mozambique government, resulting in five new exploration licenses and a 30% stake for the company. The focus remains on securing liquidity for legacy shareholders while redirecting resources towards the Bisie North Project in the DRC.

Rome Resources Plc has announced that it has reached a settlement with the Mozambique government concerning a previous dispute regarding the expropriation of Mining Concession 4623C in 2011. The new agreement also involves IM Minerals Limited and will resolve the longstanding complaint from Rome Resources. Rather than receiving cash, the Mozambique government will issue five new research and exploration licenses to a local entity.

Rome Resources will retain a 30% carried stake in the newly acquired assets, which cover an area of approximately 600 square kilometers and are believed to contain graphite and heavy mineral sands. Importantly, the company will not be responsible for exploration expenses, and a liquidity event is anticipated in the near future.

Any future cash proceeds derived from the monetization of these assets will be allocated to the eligible legacy shareholders, after expenses have been accounted for. Chief Executive Paul Barratt articulated the sentiment, stating that the settlement provides a promising opportunity for legacy shareholders through the graphite licenses.

Barratt further emphasized that the company will not be investing financial resources into this project, and its primary focus will continue to be on the exploration for tin and copper at the Bisie North site in the Democratic Republic of Congo. He expressed anticipation for updating shareholders on the Bisie North Project’s progress regarding grades and volumes shortly.

In conclusion, Rome Resources has successfully settled a dispute with the Mozambique government and secured valuable exploration licenses. The company’s new 30% carried stake provides promising potential for legacy shareholders, who may benefit from future monetization of these assets. Nonetheless, Rome Resources will concentrate its financial efforts on the Bisie North Project, emphasizing its commitment to a focused exploration strategy.

Original Source: www.proactiveinvestors.com