GreenX Metals (ASX:GRX) disclosed a favourable outcome in its arbitration against the Republic of Poland, securing a total compensation of approximately $490 million.
The compensation, awarded by the Tribunal under the Australia-Poland Bilateral Investment Treaty and the Energy Charter Treaty, includes interest calculated at a compounded rate until the final payment is made by Poland.
The BIT Award includes approximately £252 million ($490 million), which involves interest calculated from December 2019 to the award date and beyond.
The ECT Award amounts to approximately £183 million ($355 million), also accounting for compounded interest from December 2019.
Each party will bear its legal fees, with GreenX's expenses fully covered under a funding agreement with Litigation Capital Management.
The Tribunal ruled that Poland violated its obligations concerning the Jan Karski project under the Treaties, though the claim related to the Dębieńsko project was not upheld.
CEO Ben Stoikovich stated, “The Tribunal has unanimously held that the Republic of Poland had breached its obligations under the Treaties,” confirming GreenX's right to compensation.
GreenX plans to release further details following a comprehensive review of the Tribunal's decisions.
The arbitration proceedings were conducted under the UNCITRAL Rules, with any potential set-aside motions to be filed in appropriate courts within a specified period.
GreenX notes the high threshold required for Poland to succeed in such applications, marking a definitive step in the arbitration process.
At the time of reporting, GreenX Metals' share price was $0.86.