Belgravia to see litigant PolyNatura pay for damages

Executive Summary

• Belgravia Hartford Capital Inc. provided a significant update on its litigation against PolyNatura Corp. regarding the Ochoa royalty interest, resulting in a final judgment in Belgravia's favor on the remaining claim.
• The court ordered PolyNatura to deposit $9,046.05 in damages and sanctioned PolyNatura's defense counsel $2,000 for failing to comply with pretrial scheduling deadlines.
• The company is actively evaluating additional enforcement actions regarding PolyNatura's post-2021 conduct and disputes PolyNatura's recent press release as misleading.

Key Details

• Litigation Outcome: The U.S. District Court for the District of New Mexico entered a final judgment on March 19, 2026, dismissing the remaining claim (books-and-records inspection) as moot after PolyNatura deposited the established damages amount.
• Damages and Sanctions:
  • PolyNatura was ordered to deposit $9,046.05 with the court clerk pursuant to Fed. R. Civ. P. 67.
  • PolyNatura's defense counsel was sanctioned $2,000 under Fed. R. Civ. P. 16(f) for unjustified failure to comply with pretrial scheduling deadlines.
  • Plaintiff counsel was not sanctioned.
• Royalty Terms: The Ochoa royalty agreement remains in full force, granting Belgravia:
  • 75% royalty on water revenue.
  • 1% royalty on mining revenue.
  • Combined cap of $12.2 million (U.S.).
• Asset Details: The Ochoa project is described as the only naturally occurring large-scale polyhalite deposit in the Americas, with published resources of approximately 630 million tons at over 82% grade and a mine life exceeding 50 years.
• Strategic Context: The value of the project's deepwater wells in the Permian basin region has appreciated following New Mexico's enactment of the Strategic Water Supply Act in April 2025.
• Dispute with PolyNatura: Belgravia refutes PolyNatura's claim that all claims were resolved on the merits, noting the final claim was dismissed as moot only after payment. Belgravia also corrects PolyNatura's claim that Belgravia retained 10 law firms, stating only four were used.
• Future Actions: The company is evaluating additional enforcement actions for PolyNatura's conduct post-2021 and anticipates further updates. PolyNatura intends to seek recovery of attorneys' fees, which will be addressed by the court.
• Corporate Treasury: The company continues to hold Bitcoin and the BITX ETF in its treasury.

Notable Quotes

• Mehdi Azodi, President and CEO: "The Ochoa royalty is a valuable, long-duration asset tied to one of the most significant polyhalite deposits in the world. We are fully focused on enforcement of our contractual rights. Our legal team continues to evaluate all available remedies, and we expect to have more to say on that front shortly. We remain committed to maximizing the value of this royalty for our shareholders."