Copper Mesa Mining Awarded US$24 Million for Expropriation of Ecuador Mining Projects

Copper Mesa Mining (TSX:CUX) reported that an Arbitral Tribunal of the Permanent Court of Arbitration in the Hague, Netherlands has awarded the company US$19,447,498, plus pre- and post-award interest, due to Ecuador’s unlawful expropriation of Copper Mesa’s investments in the Junin and Chaucha mining projects.
As quoted in the press release:

Copper Mesa delivered a Notice of Arbitration under the UNCITRAL Arbitration Rules on January 21, 2011 pursuant to the Agreement between the Government of Canada and the Government of the Republic of Ecuador for the Promotion and Protection of Investments (the “Treaty”).
The Award upheld Copper Mesa’s claims that Ecuador breached Articles II(2) and VIII(1) of the Treaty by failing to accord Copper Mesa’s investments in the Junin project fair and equitable treatment and by unlawfully expropriating those investments. The Award also confirmed that Copper Mesa’s investment in the Chaucha project was unlawfully expropriated. As a result of these breaches, the Tribunal has ordered Ecuador to pay damages amounting to approximately US$24.365 million as at the date of the Award.

Copper Mesa President Gary Davis said:

On behalf of Copper Mesa’s board of directors, we are pleased that the Tribunal has recognized Ecuador’s unlawful expropriation of the Company’s investments in both of its principal mining projects. The Company looks forward to collecting on the Award on behalf of all of its stakeholders. We thank our legal team, led by Robert Wisner, Co-Chair, International Arbitration at McMillan LLP.

Click here for the full press release.