Looming US$300m Judgment Debt: Cassius Gives Update On Int’l Arbitration

There appears to be a cliffhanger in the matter between the Republic of Ghana and the Ghanaian subsidiary of Cassius Mining Limited from Australia over a mining concession dispute.

A week ago, the Attorney General(A-G) secured an injunction against Cassius Mines at a High Court in Accra but the Australians are of the view that their case as is before the Permanent Court of Arbitration(PCA) is still valid.

On the heels of the A-G securing injunction in Ghana on the matter, Cassius Mines have also released a statement and published it in ASX Announcement, an online portal in Australia to lay claim to the fact that the Injunction in Ghana has no hold on the matter at the PAC in Hague.

They proceeded to give the outline of the processes so far as captured in their statement signed by James Arkoudis – Director, Chief Executive Officer of Cassius Mines.

Below is the full text as released by ASX ANNOUNCEMENT on 1st August 2023:

GHANA INTERNATIONAL ARBITRATION UPDATE:

On 3 February 2023, the Ghanaian subsidiary of Cassius Mining Limited (“Cassius or the Company”) commenced international arbitration against the Republic of Ghana (“Ghana”) seeking damages in excess of USD 275 million as a consequence of Ghana’s breaches of the Large-Scale Prospecting Licence Agreement entered into with the Company.

The latest developments in the international arbitration are as follows: 31 July 2023 – Ghana was granted an injunction in the High Court of Accra to restrain the Company from pursuing the international arbitration. In any event, as discussed below, it will not prevent the Company proceeding with the international arbitration.

31 July 2023 – The Secretary-General of the Permanent Court of Arbitration at The Hague (“PCA”) designated an appointing authority for the international arbitration under Article 6.2 UNCITRAL Arbitration Rules (2021) in response to the Company’s request. The Company had requested this due to Ghana’s ongoing failure to appoint
an arbitrator.

31 July 2023- Shortly after the Secretary-General of the PCA issued his decision,Ghana proceeded to appoint its party-appointed arbitrator.

NEXT STEPS
The two party-appointed tribunal members will now jointly appoint a Chair and the three (3) member tribunal will be constituted. The tribunal will then set a timetable for pleadings and evidence moving toward hearing of the matter. If Ghana has any further jurisdictional objections, these will be determined by the tribunal itself (not the High Court of Ghana).

This has been authorized and approved by the board for release.

James Arkoudis – Director, Chief Executive Officer(Cassius Mines)