Strategic Minerals PLC (LON:SML) has been awarded US$21.9mln in damages and costs, exclusive of additional interest.
The decision of the arbitrator relates to a dispute centred around the company’s Cobre magnetite operation.
The award comprises liquidated damages of US$4.2mln loss of profits of US$14mln, punitive damages of US$3.6mln, and arbitration costs of US$23,660.
Strategic Minerals is now proceeding to confirm the decision in the United States District Court in the client's local jurisdiction, where the arbitration technically took place.
Assets have been 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
This successful arbitration outcome puts Strategic Minerals in the best possible position to seek recovery of this award.
However, the company remains cautious on the ultimate outcome, as the case now moves, pro forma to the District Court.