Omni Bridgeway funds Montauk Metals claim against Colombia
Omni Bridgeway is funding arbitration proceedings brought by Montauk Metals against the Republic of Colombia to enforce the company’s rights to compensation under the Canada-Colombia Free Trade Agreement.
Montauk contends that Colombia breached its obligations owed to the company, including by failing to compensate the company for losses incurred as a consequence of Colombia’s prohibition of mining in the páramos (high altitude eco-systems).
The company must make an additional payment of US$200,000 to the International Centre for Settlement of Investment Disputes (ICSID) before a ruling on Phase 1 of the arbitration (which considers jurisdiction and liability) is rendered. Omni Bridgeway has agreed to lend US$200,000 to fund the ICSID payment in order for the Tribunal to render a ruling on Phase 1. The interest rate for the loan is 20%, compounded annually.
Further information can be found here.