Pathfinder Minerals saw a surge in its shares on Friday following the announcement that the company has entered into a revised agreement to sell its subsidiary, IM Minerals. The London-listed mining firm’s shares closed up 15% at 0.38 pence, representing an increase of 0.05 pence.
Under the new agreement, Pathfinder Minerals will sell its wholly-owned subsidiary to Acumen Advisory Group for an initial consideration of £1 million ($1.3 million), a reduction from the previous agreement of £2 million. Additionally, the company will transfer the rights to bring a claim against the Government of Mozambique for the expropriation of a mining concession.
In return, Pathfinder Minerals will receive a larger contingent payment of approximately $30 million, an increase from the previous offer of $24 million. This amount represents 25% of the total payment to be made upon settlement of the claim.
Chairman Dennis Edmonds expressed his confidence in the revised consideration structure, stating that it better reflects the long-term potential value of the claim. He also assured shareholders that, subject to their approval, the disposal will proceed as planned, with the full funds already being held in the company’s solicitors’ client account.