Pathfinder Minerals PLC on Wednesday said that it has entered into a conditional binding sale and purchase agreement with Acumen Advisory Group LLC regarding the disposal of its subsidiary, IM Minerals Ltd.
Pathfinder Minerals is a natural resources company with licences to mine heavy minerals sands in Mozambique.
Shares in the company were trading 22% higher at 0.55 pence each in London on Wednesday morning.
Completion of the deal will result in a cash payment by AAG to Pathfinder of £2 million.
Pathfinder also disposes the rights to bring a claim against the government of Mozambique under the Mozambique-United Kingdom Bilateral Investment Treaty for the expropriation of Mining Concession 4623C.
Under the agreement, AAG is bound to begin commence legal proceedings against the government within three months of completion, having confirmed that it has secured at least $15 million to fund the claim and will use its best endeavours to settle or finalise it within five years.
A contingent payment will be made by AAG to Pathfinder of the greater sum of $24 million, or 20% of net recoveries, from any settlement or determination of the claim.
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