Ownership issues continue to hamper Pathfinder Minerals

Struggles at AIM-listed natural resources Pathfinder Minerals - which has mining concessions on the Indian Ocean coast of Mozambique - have continued with former director Jacinto Soares Veloso requisitioning a general meeting of shareholders to discuss the group's affairs.

Veloso resigned as a director of Pathfinder Minerals back in November and claimed (in his letter of resignation) that the company's principal asset - the licence to mine heavy mineral sands owned by Pathfinder's 99.99%-owned subsidiary Companhia Minera de Naburi (CMDN) - is no longer owned by CMDN.

Interestingly, JV Consultores Internacionais - an entity controlled by Veloso and one Diogo Jose Enriques Cavaco, both currently directors of CMDN - is a shareholder in Pathfinder Moambique, a company in no way affiliated with Pathfinder Minerals. It was revealed in November that Pathfinder Moambique had been assigned an exploration and research licence over an area which Pathfinder Minerals believes is an amalgamation of its own Moebase and Naburi mining concession areas, together with additional acreage which CMDN had previously sought for logistical purposes.

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"The directors of Pathfinder Minerals, together with the company's legal advisers in the UK and Mozambique, are pursuing all avenues to secure the company's licences and resume project development," Pathfinder Minerals said back in November.

In December, Pathfinder Minerals then applied for and was granted an interim injunction by the English High Court ordering Veloso, Cavaco and JV Consultores Internacionais "against taking any steps to interfere with the rights of ownership of the company's wholly-owned subsidiary, IM Minerals Ltd, in the shares of CMDN". There will be a hearing on March 19th to consider the matter.

Two weeks ago, the story took another turn when the Republic of Mozambique's Ministry of Mineral Resources (the Ministry) revealed that the two licences are no longer registered to CMDN. "[The Ministry] has given no explanation as to the reasons for or basis of this register change," Pathfinder Minerals announced. The company is attempting to get the mining register "rectified".

"This action is being taken notwithstanding attempts by General Veloso and associates...to gain control of CMDN by taking steps which, on the strength of the facts known to the company's Mozambique counsel, comprise illegal actions and are defective under Mozambique law."

Currently, the company is still attempting to work out which entity owns the licences. Today, it was announced that Veloso and Cavaco have asked for a general meeting to propose to shareholders appointing an independent accountant to carry out a review of the company's affairs.

"The company will comply with its obligations under the Companies Act and, subject to establishing the validity of the requisition, will convene a general meeting," Pathfinder Minerals said.

BC