Burford Capital, through its wholly owned subsidiary Woolridge Investments LLC, is funding the budgeted cost of arbitration for ASX-listed Greenland Minerals in its dispute with the Government of Greenland and the Government of the Kingdom of Denmark.
After more spending more than ten years and investing over $130 million into its Kvanefjeld rare earths project in southern Greenland, development of the company’s project came to a halt in December 2021 due to a new law banning uranium mining.
The arbitration case concerns the exploration licence and the effect, if any, of Greenland Parliament Act No. 20 of 1 December 2021 on the company’s entitlement to an exploitation licence under Section 14 of the exploration licence.
The funding agreement will underwrite the entire budgeted legal and associated costs of the arbitration case. The agreement is entered into on a non-recourse basis and other commercial terms standard for funding agreements of this nature.
Daniel Mamadou, Managing Director of Greenland Minerals, commented:
“We are pleased to have signed this agreement. The funding facility, which is essentially a parallel line of financing, will provide more certainty on our costs and will maintain our liquidity while the arbitration is ongoing.
The Company’s primary objective remains the development of the Kvanefjeld rare earths project and, through the arbitration process that the funder will now be supporting, the Company is seeking clarity on the application of Act No. 20 to the Kvanefjeld project, so that a path forward for the development of this important asset can be worked out by all parties.“