Strategic Minerals PLC (AIM:SML, FRA:24S) announced the potential for a partial recovery by its wholly owned subsidiary, Southern Minerals Group (SMG), of an arbitrated claim for US$21.9mln from CV Investments LLC.
The announcement related to the long-running arbitration was made following an update from a receiver appointed to CVI. SMG has pursued an arbitration action against CVI in connection with its purported breach of a magnetite concentrates purchase and sale agreement.
"The updated receiver's report, with its identification of the potential for additional material realisations, highlights the possibility of a partial recovery of SMG's arbitrated claim on CV Investments,” said John Peters, managing director of Strategic Minerals.
"It is currently not possible for the company to quantify either the potential settlement amount, if any, or its likely timing. Accordingly, the company has not factored the receipt of any such proceeds into its financial plans.
"In line with the receivership nearing its conclusion, the company expects to more frequently update the market on its progress," he added.
The receivership is unlikely to be completed before the end of this year, said AIM-listed Strategic Minerals.