Aris Mining, Colombia government enter settlement and termination pact

Aris Mining (ARMN) announced that it has entered into a settlement and termination agreement with the Republic of Colombia, represented by the National Agency for Legal Defense of the State, to end the arbitration proceeding brought under the Canada-Colombia Free Trade Agreement. The arbitration was originally initiated in May 2018 by Gran Colombia Gold Corp. before the International Centre for Settlement of Investment Disputes, an institution of the World Bank Group, and included a request for a cash award for alleged damages. Following Aris Mining’s formation through the merger of GCM Mining and Aris Gold in September 2022, Aris Mining continued the process but engaged with the Government of Colombia to pursue a constructive, cooperative solution. The parties have terminated the ICSID arbitration and settled the claims submitted to this case. No cash payments were required or contemplated as part of the settlement reflecting an agreement structured on the exchange of performance obligations rather than financial consideration. The material terms of settlement are: the entry into three “Pillar Agreements” that include performance obligations on the part of each of Aris Mining, the Republic of Colombia and relevant Colombian regulatory agencies in respect of formalization in the Marmato area, and collaborative initiatives with the National Police and Ministry of Defence; engagement with the Attorney General’s Office to support ongoing legal and enforcement processes that protect the company’s operations and workforce; cooperation commitments from the Caldas regional environmental authority for Marmato, to oversee compliance of formalized mining operations in the Cerro El Burro area with applicable mining regulations and permits, and to exercise its enforcement powers, including imposing fines, sanctions, and precautionary measures where necessary and each party assuming responsibility for their own costs associated with the arbitration and its settlement. The company said, “The “Pillar Agreements”, jointly developed by Aris Mining, and the Government of Colombia are: 1. Agreement for Mining Formalization and Sustainable Territorial Development in the Marmato area with the Ministry of Mines and Energy and the National Mining Agency. 2. Collaboration and Cooperation Agreement with the National Police. 3. Collaboration Agreement with the Ministry of Defense. The Settlement Agreement and associated Pillar Agreements will remain in effect for a ten-year term and will be overseen by a Joint Representatives Committee comprising delegates from Aris Mining and ANDJE to ensure effective implementation.”