In the heart of a gripping dispute lies the unlawful withdrawal of a company’s rights to a valuable exploration permit. This permit covered a significant gold deposit crucial to the company’s project. Here’s a fresh take on the intricate details surrounding the Litigation Funding Agreement and the company’s plans for arbitration:
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The Litigation Funding Agreement:
- A non-recourse loan facility of US$4.4 million is provided to cover all expenses related to the claim to arbitration.
- Security is tied to the claim, potential proceeds, and benefits from the subsidiary companies involved in the project.
- Monies advanced through the facility are only repayable upon a successful claim outcome or in the event of default.
- The funding return is contingent on the settlement of the claim, with distribution priorities outlined in the agreement.
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Plans for Arbitration:
- Following unsuccessful attempts to resolve the dispute amicably with the Burkina Faso government, the company is gearing up to file a Request for Arbitration.
- Seeking full compensation for losses incurred, including the permit value, historic project investments, and damages from government actions.
- Boies Schiller Flexner, a renowned law firm, is onboard to handle the legal matters with expertise in international investment disputes.
- Background to Claim:
- Notification of rejection of the permit by the Burkina Faso Minister led to the company’s interpretation of rights withdrawal.
- The minister’s silence on subsequent correspondence further solidified the company’s stance on the permit’s illegal withdrawal.
- The violations have rendered the project valueless, prompting legal action to seek redress for substantial damages.
In Conclusion:
The establishment of a funding facility and engagement of legal experts mark significant strides in the company’s quest for justice. Armed with diligence and determination, the company proceeds with arbitration, aiming to recover losses and hold the responsible party accountable for their actions.
