REG - GreenX Metals Ltd - Greenx Files £737M Statement of Reply

GreenX MetalsAnnouncement

06/07/2022 07:00

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RNS Number : 4406R  GreenX Metals Limited  06 July 2022

GREENX METALS LIMITED

 

NEWS RELEASE | 6 July 2022

 

GREENX FILES £737 MILLION (EQUIVALENT TO A$1.3 BILLION/PLN4.0 BILLION)
STATEMENT OF REPLY FOR REVISED COMPENSATION CLAIM AGAINST POLAND

 

 ·               Statement of Reply for ongoing arbitration against Poland has been filed with
                 a revised claim for compensation in the amount of £737 million (A$1.3
                 billion/PLN 4.0 billion) as prepared by external quantum experts
 ·               Claim includes an updated assessment of the value of GreenX's lost profits and
                 damages related to both the Jan Karski and Debiensko mines, and accrued
                 interest related to any damages
 ·               Next steps in the arbitration process are for Poland to lodge its final
                 submission to the Tribunal (the Rejoinder) followed by a hearing to be
                 conducted in front of the Tribunal
 ·               The Claim against Poland continues:
                 o   To allege that Poland has breached its obligations under the ECT and BIT
                 Treaties through its actions to block the development of the Company's Jan
                 Karski and Debiensko mines in Poland
                 o   That Poland's actions have deprived GreenX of the entire value of its
                 investments in Poland
 ·               The Company's Claim is being prosecuted through an established and enforceable
                 legal framework under the United Nations Commission on International Trade Law
                 (UNCITRAL) Rules
 ·               The Company is well funded to pursue the Claim with the US$12.3 million
                 Litigation Funding Agreement (LFA) in place which is currently being drawn
                 down to cover legal, tribunal and external expert costs as well as defined
                 operating expenses associated with the Claim

 

GreenX Metals Limited (GreenX or the Company) is pleased to report that as
part of the ongoing international arbitration claims (Claim) against the
Republic of Poland under both the Energy Charter Treaty (ECT) and the
Australia-Poland Bilateral Investment Treaty (BIT) (together the Treaties),
the Company has now filed its Statement of Reply in the BIT arbitration. This
is the final material filing that GreenX will make for the BIT arbitration,
with the next steps being for Poland to lodge their final filing (the
Rejoinder) followed by a hearing to be conducted in front of the Tribunal.
Based upon revised external expert reports in response to Poland's Statement
of Defence, GreenX is now seeking compensation in the amount of £737 million
(equivalent to A$1.3 billion or PLN 4.0 billion).

 

Mr Stoikovich, Chief Executive Officer of GreenX commented: "The Claim is
proceeding at pace, following the Company's submission of its Statement of
Reply in the BIT arbitration, which included a revised valuation of damages.
The compensation being claimed by the Company is £737 million following an
update prepared by external quantum experts. The GreenX management team
continues to work with its legal counsel and a range of external experts in
prosecuting the Claim."

 

DETAILS OF THE CLAIM

 

The Company's Claim against the Republic of Poland is being prosecuted through
an established and enforceable legal framework, with GreenX and Poland
agreeing to apply the UNCITRAL rules to the proceedings.

 

Both the BIT and ECT claim Tribunals have been constituted, with both Claims
being registered with the Permanent Court of Arbitration in the Hague. The BIT
and ECT claim proceedings proceed at pace, with the Company now having filed a
revised claim for damages against Poland with the Tribunal in the amount of
£737 million (A$1.3 billion/PLN4.0 billion), which includes a revised
assessment of the value of GreenX's lost profits and damages related to both
the Jan Karski and Debiensko mines, and accrued interest related to any
damages. The Claim for damages has been assessed by external quantum experts
appointed by GreenX specifically for the purposes of the Claim.

 

In July 2020, the Company announced it had executed the LFA for US$12.3
million with Litigation Capital Management (LCM). The facility is currently
being drawn down to cover legal, tribunal and external expert costs as well as
defined operating expenses associated with the Claim.

 

In September 2020, GreenX announced that it had formally commenced with the
Claim by serving the Notices of Arbitration against the Republic of Poland. In
June 2021, GreenX announced that it had formally lodged its Statement of Claim
in the BIT arbitration, including the first assessed claim for compensation.
The Company's Statement of Reply, the last material filing to be made by the
Company for the BIT arbitration proceedings, has now been filed. The Statement
of Reply addresses various points raised by the Republic of Poland in their
Statement of Defence. The Statement of Reply also contains a re-evaluation of
the claim for damages based on responses to Poland's Statement of Defence.

GreenX's dispute alleges that the Republic of Poland has breached its
obligations under the applicable Treaties through its actions to block the
development of the Company's Jan Karski and Debiensko mines in Poland which
effectively deprives GreenX of the entire value of its investments in Poland.

 

In February 2019, GreenX formally notified the Polish Government that there
exists an investment dispute between GreenX and the Polish Government.
GreenX's notification called for prompt negotiations with the Government to
amicably resolve the dispute and indicated GreenX's right to submit the
dispute to international arbitration in the event of the dispute not being
resolved amicably. As of the date of this report, no amicable resolution of
the dispute has occurred, since the Polish Government has declined to
participate in discussions related to the dispute and accordingly the Company
has formally proceeded with its Claim as discussed above.

 

GreenX's investment dispute with the Republic of Poland is not unique, with
international media widely reporting that the political environment and
investment climate in Poland has deteriorated since the change in Government
in 2015. As a result, there are a significant number of International
Arbitration claims being bought against Poland in the natural resources and
energy sectors with damages claims ranging from US$120 million to over US$1.3
billion and includes Lumina Copper (Copper) and InvEnergy (wind farms).

 

Please refer to the Claim progress in the full announcement at
www.greenxmetals.com.

 

 

 

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