Arrowhead finds sugar daddy to fund lawsuit against Egypt
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Arrowhead Resources has found a financial backer for its legal fight against the Egyptian government over the loss of its 50 per cent stake in the Abu Dabbab tantalum, tin and feldspar project.
A Guernsey-based subsidiary of the Calunius Litigation Risk Funds is considering funding the company’s legal costs and now has until January 15 to finalise a conditional agreement.
Arrowhead (ASX:AR1) and its wholly owned subsidiary Tantalum International are suing Egypt over allegations the government expropriated its interest in the Abu Dabbab project, located in southern Egypt.
Calunius initially had until November 15 to reach a binding funding agreement after inking a conditional deal in August, but Arrowhead has granted an extension to allow for the Christmas break.
Under the arbitration funding agreement, if Arrowhead is successful, Calunius will recoup its expenses plus a risk fee.
Tantalum International is taking care of the lawsuit while Arrowhead works to complete its transition to an eSports company with the planned acquisition of Gaming Battle Ground Pty Ltd.
Tournaments are played in front of thousands of fans for huge sums of prize money.
London-based eSports platform Gaming Battle Ground plans to list on the ASX through a reverse takeover of Arrowhead.
Arrowhead received shareholder approval for the deal in October and has been working to complete a $5 million capital raising.
The company plans to restructure the majority of its interest in Tantalum International, including a distribution to shareholders on a pro-rata basis to benefit from any potential settlement.
Arrowhead has been contacted for comment.