Pathfinder Minerals Gets New CEO; Responds To Equity Raise Suggestion

LONDON (Alliance News) - Pathfinder Minerals PLC on Monday said it has appointed a new chief ...

Alliance News 3 June, 2019 | 3:11PM
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LONDON (Alliance News) - Pathfinder Minerals PLC on Monday said it has appointed a new chief executive and responded to the suggestion that it might be planning an equity raise.

Shares in Pathfinder were up 15% at 2.71 pence in afternoon trade.

Pathfinder also responded to claimed that action was being taken by third parties over Mozambique mining concession 4623C, in which Pathfinder is attempting to restore its interest.

"The company notes an article which appeared in the press yesterday which suggested, inter alia, that Pathfinder was considering an equity fundraise. The board continues to evaluate its funding requirements and will update the market in due course.

"The same article went onto reference action being taken by certain third parties in respect of the licence. Whilst Pathfinder has received correspondence in relation to certain claims, it has recently responded, via its lawyers, noting that the claims relate to parties other than the company," said Pathfinder.

John Taylor has been appointed as CEO with immediate effect, replacing Scott Brown who departs the company to focus on other business interests.

Most recently, Taylor has been "assisting small cap listed companies with their development" but before that spent 18 months in private equity backed portfolio companies. Taylor is a non-executive director at Two Shields Investments PLC, Bidstack Group PLC, and Sabien Technology Group PLC.

The miner has been evaluating many transaction structures through which it could re-establish its interest, which would involve settling all legal disputes associated with the lease.

A number of proposal have been received in recent weeks and Pathfinder's board has asked for more clarity from parties before it decides whether or not to proceed.

This discussions are progressing " in a positive way" and if they do conclude they could have a "transformational" effect on the company.

Mining concession 4623C contains the Moebase and Naburi heavy mineral sands deposits in and has an estimated pre-tax net present value, at a 10% discount rate, of USD1.05 billion plus annual revenue of GBP323 million over a 30 year life-of-mine.

Back in November 2011, the company's mining concessions were consolidated and given to Pathfinder Mocambique SA, which is not affiliated with Pathfinder Minerals. Since then, Pathfinder has been attempting to resolve this significant setback.

In February, it was agreed that Africa Focus Group will provide Pathfinder Minerals with assistance in completing a transaction with the owners of Pathfinder Mocambique SA, after which Pathfinder will gain control of 4623C.

Pathfinder Non-Executive Co-Chair Henry Bellingham said: "I am very encouraged by the progress being made towards restoring an interest in the key Licence in Mozambique that has tested the patience of shareholders for some years now. I am optimistic that with the options being proposed to us that we are progressing towards the point whereby that patience could be rewarded."

"I would like to thank Scott for his considerable efforts in helping the company get to this stage and am sad to see him leave. I welcome John Taylor on board and have every confidence in the Board to take this to the next key milestone."

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Pathfinder Minerals PLC 0.53 GBX 10.53 -

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