Pathfinder Minerals plc: January 2015

Wednesday 14 January 2015

Mozambique Supreme Court rejects Pathfinder Minerals' claim

(1) Mozambique Supreme Court unanimously rejects Pathfinder Minerals claims

The Owners of CMdN, General Veloso and Diogo Cavaco are pleased that the Mozambique Supreme Court has unanimously rejected Pathfinder Minerals’ claim for costs related to the UK proceedings (the so-called “First Claim”) on the grounds that the English contracts breached articles 99 and 100 of the Civil Procedure Code of Mozambique and therefore the UK court did not have jurisdiction over this matter.

The effect of this judgment is that the so-called “Second Claim” for additional costs of £1m and enforcement of the UK judgment will also be rejected.

General Veloso is a highly distinguished Mozambican who, after a decorated career in the armed forces following the country's independence, held many prominent government positions, including Minister of State Security, General Director of the Intelligence Services, Minister of Economic Affairs and Minister of International Cooperation. From 2003-2009 he was Chairman of the Mozambique Chamber of Commerce.

General Veloso is an adviser to the President of the Republic of Mozambique and a member of the National Defence and Security Council. He has acted as the President of the Republic of Mozambique's envoy on numerous occasions, mainly in the matters of the establishment of peace in Mozambique and Angola, the end of apartheid in South Africa and Namibian independence. General Veloso was the chairman of the Government Commission that negotiated the M'Komati Accord of "good neighbourliness and non-aggression" with the Republic of South African 1984. He remains, today, the President of the South Africa-Mozambique Friendship Association.