Aris Mining signs agreement to end ICSID arbitration

Executive Summary

• Aris Mining Corp. has entered into a settlement and termination agreement with the Republic of Colombia to end the ICSID arbitration (Case No. ARB/18/23) initiated by its predecessor, Gran Colombia Gold Corp.
• The settlement involves no cash payments; instead, it is structured around the exchange of performance obligations, including three new "pillar agreements" focused on security, formalization, and sustainability in the Marmato area.
• The agreement establishes a 10-year term overseen by a joint committee and marks the first such agreement in Colombia to resolve an investor-state arbitration through collaboration rather than arbitration.

Key Details

• Arbitration Termination: The ICSID arbitration case No. ARB/18/23, originally initiated in May 2018 by Gran Colombia Gold Corp. (GCM Mining), has been terminated. Aris Mining, formed via the merger of GCM Mining and Aris Gold in September 2022, continued the process but chose to settle.
• Financial Terms: No cash payments were required or contemplated. The settlement is based on performance obligations rather than financial consideration. Each party assumes responsibility for its own costs associated with the arbitration and settlement.
• Pillar Agreements: Three specific agreements were entered into:
  1. Mining Formalization: An agreement with the Ministry of Mines and Energy and the National Mining Agency regarding formalization in the Marmato area and sustainable territorial development.
  2. National Police Collaboration: A cooperation agreement with the National Police.
  3. Ministry of Defense Collaboration: A cooperation agreement with the Ministry of Defense.
• Legal and Regulatory Cooperation:
  • Engagement with the Attorney General's Office to support legal and enforcement processes protecting operations and workforce.
  • Cooperation commitments from CORPOCALDAS (Caldas regional environmental authority) to oversee compliance of formalized mining operations in the Cerro El Burro area, including enforcement powers (fines, sanctions, precautionary measures).
• Governance: A joint representatives committee comprising delegates from Aris Mining and ANDJE (National Agency for Legal Defense of the State) will oversee implementation for a 10-year term.
• Operational Context: Aris Mining operates two underground gold mines in Colombia (Segovia and Marmato), producing 210,955 ounces of gold in 2024. The company is targeting an annual production rate of over 500,000 ounces, driven by a second mill at Segovia (commissioned June 2025) and the Marmato complex bulk mining zone (first gold expected H2 2026).
• Other Projects:
  • Toroparu (Guyana): Preliminary economic assessment completed; prefeasibility study in progress.
  • Soto Norte (Joint Venture): Aris holds 51% interest. Prefeasibility study completed confirming high-grade, long-life economics. Environmental studies being finalized for submission in H1 2026.

Notable Quotes

• Neil Woodyer, CEO: "We are very pleased to have resolved this complex matter through discussion and co-operation rather than arbitration... Importantly, this is the first agreement of its kind in Colombia to resolve an investor-state arbitration. It demonstrates our shared commitment with the government of Colombia to work together to enhance security, promote responsible mining practices and support sustainable development in the communities where we operate."