Bear Creek Mining Awarded US$30.4 Million for Santa Ana Arbitration Claim
TSX VENTURE: BCM
VANCOUVER, Dec. 1, 2017 /CNW/ - Bear Creek Mining Corporation (TSX Venture: BCM) announces that the Tribunal of arbitrators hearing the Company's Santa Ana arbitration claim (the "Arbitration") at the International Centre for the Settlement of Investment Disputes ("ICSID") has rendered an Award (the "Award") of approximately US$ 30.4 million in favor of the Company, which Award includes interest and arbitration costs (including attorneys' fees).
Anthony Hawkshaw, President and CEO of Bear Creek states, "With the Arbitration concluded, we look forward to accelerating the advancement of our Corani project in conjunction with the Government of Peru and the Corani communities."
The Arbitration was initiated by the Company in 2014 and arose from, among other things, the Peruvian Government's issuance of Supreme Decree 032 in June 2011, which nullified Bear Creek's rights to operate at the Santa Ana project. A comprehensive summary of the history of the Santa Ana dispute is provided in the Company's Annual Information Form dated April 19, 2017 (available at Click Here).
As detailed in the Award, the Tribunal agreed with the vast majority of Bear Creek's arguments. It concluded that the Government of Peru breached its obligations to the Company under the Canada-Peru Free Trade Agreement. In particular, the Tribunal held that Supreme Decree 032 constituted an unlawful expropriation of the Santa Ana Project. The majority of the Tribunal also concluded that Bear Creek had complied with all legal requirements regarding its outreach activities to the local communities, which Peru approved, supported and endorsed. "Ethical conduct and full compliance with Peruvian laws and regulations is a cornerstone of Bear Creek's corporate principles," states Andrew Swarthout, Bear Creek's Executive Chairman. "We have always, and will continue to, operate under these tenets."
The Award, from which there is no appeal, is binding upon the parties and payment is due promptly. Article 52 of the ICSID Convention provides the opportunity, within 120 days and under limited grounds, for either party to request annulment of the Award.