Litigation Management Agreement
The Company and its Mexican subsidiary have agreed with Almaden and its Mexican subsidiary to streamline the management of the arbitration proceedings by entering into a Litigation Management Agreement (“LMA”). Under the LMA, Almaden will bear the up-front costs of the arbitration and provide overall direction to the arbitration process for itself and its subsidiaries, as well as Almadex and its subsidiaries, with certain limitations. Almadex will remain a party to the arbitration and continue in its cooperation and support of the process. In its press release of today, Almaden announced that it has secured litigation funding in the amount anticipated to be needed to fully prosecute the arbitration proceedings.
Should the arbitration proceedings result in an award of damages, the pro rata portion of those damages, if any, which may be attributable to Almadex from the 2.0% NSR royalty it held on the Ixtaca project will be determined. Almadex’s award will consist of this pro rata portion, less the Company’s pro rata share of the costs of pursuing the legal claims, including the financing costs (the “Almadex Award”). Almadex will compensate Almaden in the amount of 10% of the Almadex Award in exchange for Almaden managing the claim proceedings.
Gold Loan Amendment
Almadex also reports that it has agreed with Almaden to extend the maturity of the gold loan (see press release of
In return for this amendment, in addition to its obligation to repay the gold loan, Almaden has agreed to pay the Company 2.0% of the gross amount of any damages that it may be awarded from the legal claims, such repayment to be subordinate to amounts due under Almaden’s litigation funding agreement, and any additional legal and management fees.
About Almadex
On behalf of the Board of Directors,
“J. Duane Poliquin”
Neither the
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within it, other than statements of historical fact, are to be considered forward looking. Forward-looking statements in this news release include, among other things, the total potential cost of the legal claims and the sufficiency of the money available under the LFA to cover these costs, the ability of the LMA to streamline corporate management of the legal claims, the ability of Almaden to repay the gold loan, the receipt by Almadex of an Almadex Award or any compensation for extending the Gold Loan, and the result and damages arising from the Company’s request for arbitration. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, permitting, continued availability of capital and financing, equipment availability, stability and predictability in Mexico’s response to the arbitration process under the CPTPP; stability and predictability in the application of the CPTPP and arbitral decisions thereon; the ability to finance the arbitration process, and continued respect for the rule of law in
Contact Information:
Tel. 604.689.7644
Email: info@almadexminerals.com
http://www.almadexminerals.com/
Source:
2024 GlobeNewswire, Inc., source