Shares of Pathfinder Minerals have surged by 18% after the company revealed that it has received legal advice to issue bonus preference shares to its shareholders. This announcement comes after a recent reshuffle of the company's management.
New Executive Director and Retirement of Nonexecutive Chairman
Pathfinder Minerals has appointed Paul Barrett as its new executive director. In addition, Nonexecutive Chairman Dennis Edmonds will be retiring from his position with immediate effect.
Legal Advice for Bonus Preference Shares
Pathfinder Minerals has also received legal advice allowing it to issue 632.5 million bonus preference shares. This issuance will take place following the completion of the sale of its subsidiary, IM Minerals, to Acumen Advisory Group.
Claim Against Mozambique Government
The sale of IM Minerals to Acumen will enable the asset recovery specialist, incorporated in Delaware, to make a claim against the government of Mozambique for the expropriation of Mining Concession 4623C.
Benefits for Shareholders
Each shareholder will receive one new bonus share in a special purpose subsidiary, which will entitle them to receive a preferential dividend equivalent to the damages that Pathfinder Minerals might receive from the claim. In the event that the claim is successful, Pathfinder is entitled to $30 million or 25% of the damages, whichever is greater.
This strategic move ensures that existing shareholders are rewarded for their patience and commitment throughout the years it has taken to resolve this matter.
Management Changes and Expertise
In addition to his role at Pathfinder Minerals, Paul Barrett is currently a director at Southwind Corporation and OK Energy. He previously served as the Chief Executive of Europa Oil and Gas.
Non-board Chief Executive Officer Peter Taylor will continue with the company until the completion of the proposed IM sale. Afterward, he will assist Accumen in pursuing the claim against the Mozambique government.