GreenX Metals Ltd on Tuesday said it has won a total of £252 million in compensation, following a successful arbitration outcome against the Polish government.
The Greenland-focused minerals exploration company said a tribunal has found Poland to have breached its obligations under both the Australia-Poland bilateral investment treaty and the energy charter treaty, in relation to GreenX’s Jan Karski project.
GreenX served Poland with a notice of arbitration back in September 2020, claiming that actions by Poland had blocked the development of the Jan Karski and Debiensko mines in Poland and that this deprived the company of the entire value of its Polish investments. In July 2022, GreenX filed a revised claim for compensation to the value of £737 million.
The company confirmed on Tuesday that it was awarded around £252 million in compensation under the Australia-Poland bilateral investment treaty award, as well as around £183 million in compensation under the energy charter treaty award.
Both awards were subject to other payments made, so GreenX will not be entitled to double compensation. Any amount paid by Poland in one arbitration, is set off against Poland’s liability in the other.
GreenX was able to fully cover its own legal fees, expenses and arbitration costs under the $12.3 million litigation capital management funding facility agreed with Litigation Capital Management Ltd in 2020. The funding agreement was a limited recourse loan on a ’no win, no fee’ basis.
Litigation Capital Management noted that, if the award is satisfied within a reasonable period without the need for enforcement, then LCM will be entitled to a multiple of six times its own invested capital, plus ‘significant’ performance fees on third party capital invested.
LCM Chief Executive Officer Patrick Moloney said: ‘This announcement represents a very significant milestone in this investment. This investment is part of Fund I and therefore stands to benefit from significant performance fees, giving it the potential to be the most successful investment in LCM’s history.’
Shares in GreenX Metals were up 10% at 50.00 pence each in London on Wednesday morning. Litigation Capital Management shares were up 1.7% to 115.22p.
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