By Richard Jennings

I make the opening remark that I am a slightly less than 4% holder of Pathfinder Minerals through my own holding and via Align and thus my sole interest is in the accretion of value to all PFP shareholders (which by extension includes current CEO Nick Trew).

That I believe there is meaningful value in PFP is apparent per HERE and given the appreciation we have seen in the price of ilmenite over the last 24 months I believe that the time is NOW to do a deal.

It is almost 5 months now since the BoD released this statement – “Also as previously announced, Pathfinder continues to seek an alternative resolution which does not rely on the courts. The Company is pleased to report encouraging progress on this strategy. The Company’s regional representative is leading discussions on the Company’s behalf with the two principal parties to a would-be resolution: the Mozambique Government and Jacinto Veloso (the Company’s former local partner into whose control the Licences were transferred).

While the content of such discussions is sensitive, Pathfinder is pleased to report that it is currently preparing with its legal counsel the framework of an agreement with Jacinto Veloso that would, if successful, result in the restoration of the Licences to Pathfinder’s control.”

Since this encouraging announcement there has been effectively radio silence, barring a modest equity raise in Dec. Either the framework proposal is dead (in which case the BoD should announce to the market this material event) or it is live and an update is due. 

My own brief discussion with Trew in early Dec last year at the time of the equity raise was pretty curt and that was due to 2 reasons – one, I and others would have in fact put money into the company at a premium to the then equity raise (and avoided bolstering the bank balance of the decimator of minorities that is Beaufort Securities) and so I believed he was acting in contrast to his fiduciary duty in raising money at a lower level and two, Trew should simply get the deal done now and not miss the cycle in commodities and ilmenite in particular and that has moved in PFP’s favour.

Wheels are now in motion here to present a fait accompli to the current CEO Trew with other material shareholders re an EGM request to replace him. What we understand from conversations with sources close to the company is that the principal hindrance to the closure of the framework deal with Veloso is in fact the toxic basis of the relationship between Trew and Veloso. This farce has gone on for way too long now, too much of the capital raised by our old friends Beaufort has gone into the BoD’s pocket (and theirs) and the lawyers and not applied to finally resolving this impasse and moving this world class project forward for all PFP shareholders. We intend to catalyse what Trew has been in capable of doing for several years now.

In the weeks ahead we will present an EGM requisition to the Board with a replacement CEO and a clear plan to, hopefully, finally receive back our licences and move this company forward. If you are a shareholder and would like to pledge your support to this please email us at richard.jennings@Alignresearch.co.uk with your shareholding and contact details.

• Pathfinder Minerals