Aim-listed Prairie Mining’s international arbitration claims against the government of Poland under both the Energy Charter Treaty (ECT) and the Australia-Poland bilateral investment treaty (BIT) continues, the company said in a quarterly report for the period ended March 31.
During the period, the BIT claims tribunal was constituted and the claim was registered with the Permanent Court of Arbitration in the Hague.
Prairie alleges that Poland has breached its obligations under the treaties through its actions to block the development of the company's Jan Karski and Debiensko mines.
Poland's actions have deprived Prairie of the entire value of its investments in Poland, the company says.
It indicates that claims for damages may include but are not limited to the value of Prairie's historical expenditure in developing both the Jan Karski and Debiensko mines, lost profits and damages, which is linked to the net present value of both mines, and accrued interest related to any damages.
Prairie’s claim against Poland will be prosecuted through an established and enforceable legal framework with both parties having agreed to apply the United Nations Commission on International Trade Law Rules to the proceedings.
The company says it is well funded to pursue the claim, with a $12.3-million litigation funding agreement in place, which is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the claim.
Moreover, at quarter end, it had cash reserves of A$5.3-million.
Prairie says it continues efforts to identify and assess other suitable new business opportunities, focused on the resources sector.