Copper Mesa has reached a binding settlement of its dispute with the Republic of Ecuador (Ecuador) pursuant to which it will receive payments totaling $20m by 20 November 2018.
As previously disclosed, on March 15, 2016, an Arbitral Tribunal of the Permanent Court of Arbitration in The Hague, Netherlands released its Award in relation to Copper Mesa’s claims against the Republic of Ecuador.
The Tribunal awarded the Company damages of US$19,447,498, plus pre- and post-award interest. The Company has agreed to compromise on its claims for interest in order to avoid the costs of further litigation relating to the enforcement of the Award.
Pursuant to the terms of the settlement, both parties agreed to withdraw pending proceedings in the Netherlands and the United States regarding the Award.
Ecuador and the Company jointly requested the removal of the of the setting-aside proceedings from the register of the District Court of The Hague, Netherlands.
The Company has also suspended its petition before the United States District Court for the District of Columbia to obtain confirmation, recognition and enforcement of the Award. The Company’s petition will be dismissed in the event of receipt of the final payment due from Ecuador on November 20, 2018.
The distribution of the total proceeds of the settlement is subject to a priorities agreement between the Company, its litigation funder and its international arbitration counsel.
After distribution of the proceeds in accordance with the priorities agreement, Copper Mesa expects to be able to satisfy the claims of its remaining creditors.
Trading in the Company’s securities has been suspended by cease trade orders since 2010 as the Company has been unable to meet its continuous disclosure obligations under securities laws.
Source: Company Press Release