GreenX Metals Reports Successful Arbitration Outcome and Project Developments in Quarterly Update
GreenX Metals has released its Quarterly Activities Report for the period ending September 30, 2024, providing updates on a significant arbitration award, the Tannenberg Copper Project, and the Eleonore North Gold Project.
GreenX reported a major win in international arbitration against the Republic of Poland under both the Australia-Poland Bilateral Investment Treaty (BIT) and the Energy Charter Treaty (ECT). The company was awarded AUD 490 million in compensation and interest. Upon receipt of the award, GreenX intends to return the majority of available cash to shareholders after covering funding, arbitration-related costs, and applicable taxes.
In August 2024, GreenX entered into an agreement to earn up to a 90% interest in the Tannenberg Copper Project in Germany. The Tannenberg project, which covers 272 square kilometers in the State of Hesse, encompasses the historic Richelsdorf copper-silver mines and is considered a highly prospective sediment-hosted copper deposit.
In July 2024, GreenX revised its agreement to acquire 100% of the Eleonore North Gold Project in eastern Greenland. The project has the potential to host a reduced intrusion-related gold system (RIRGS), similar to large bulk-tonnage deposits found in Canada.
GreenX CEO Ben Stoikovich commented on the outcome of the arbitration, stating, "Having received the Tribunal's decision, management is now focused on satisfying the award and maximizing the return of capital to GreenX shareholders. The award of AUD 490 million will continue to accrue interest at approximately 6% per annum until full and final payment by Poland."
He added, "Looking ahead, we view GreenX's future with great optimism. In addition to maximizing shareholder returns, we remain committed to advancing our copper and gold projects in Germany and Greenland."
The arbitration ruling awarded GreenX approximately GBP 252 million (AUD 490 million) under the BIT, which includes interest compounded annually at the Sterling Overnight Interest Rate (SONIA) plus 1% from December 31, 2019, until the date of the award (October 7, 2024). Interest will continue to accrue at SONIA +1% until full payment by Poland.
In a separate award under the ECT, GreenX was granted approximately GBP 183 million (AUD 355 million), also with interest accruing at SONIA +1% from December 31, 2019. Both awards are subject to offset provisions to prevent double compensation.
