Business
$21.9m Arbitration Decision Granted
$21.9m Arbitration Decision Granted.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \n \n RNS Number : 4505O\n Strategic Minerals PLC\n 01 June 2020\n \n \n \n \n Market Abuse Regulation (MAR) Disclosure\n \n \n Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.\n \n \n \n \n \n 1 June 2020\n \n \n Strategic Minerals plc\n \n \n (\"Strategic Minerals\" or the \"Company\")\n \n \n $21.9m Arbitration Decision Granted\n \n \n Strategic Minerals plc (AIM: SML; USOTC: SMCDY), \n a producing mineral company actively developing projects prospective for battery materials\n , is pleased to announce that, further to its announcement of 2 March 2020, the appointed arbitrator has awarded its wholly owned subsidiary, Southern Minerals Group (\"\n SMG\"), US$21,929,259 in damages and costs, exclusive of additional interest to be calculated as latterly described.\n \n \n Highlights\n \n \n \n · \n Comprehensive decision addressing both procedural and factual issues of the arbitration and finding in SMG's favour\n \n \n \n ·\n Total Arbitration award of US$21,929,259 plus additional interest (comprising liquidated damages of US$4,215,000, loss of profits of US$14,090,599, punitive damages of US$3,600,000 and arbitration costs of US$23,660)\n \n \n \n · \n Interest at 15%pa awarded on liquidated damages (both pre and post judgement) and on loss of profits (post judgement only)\n \n \n \n · \n SMG proceeding to confirm decision in the United States District Court in the client's local jurisdiction (where the arbitration technically took place)\n \n \n \n ·\n Client's assets seized as part of a US Securities and Exchange Commission's investigation with the Court likely to appoint a receiver to manage the assets of the client mid-June 2020\n \n \n \n ·\n Successful arbitration outcome puts SMG in the best possible case to seek recovery of this award, however visibility of the extent of this, if any, remains unclear pending further developments and the Company remains cautious on the ultimate outcome\n \n \n \n \n \n The arbitrator, a retired judge, has provided a reasoned decision which is comprehensive, and evidences careful consideration of the specifics of this case, the risks that SMG took in committing its resources to the client and ...