08:17 AM EDT, 06/27/2024 (MT Newswires) -- Almaden Minerals ( AAUAF ) , which fell 19% on Wednesday to a 52-week low, on Thursday confirmed it has secured non-recourse litigation funding of up to US$9.5 million to pursue its arbitration proceedings against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The proceedings arise from Mexico blocking the development of the Ixtaca project and retroactively terminating Almaden's mineral concessions there. The actions also impacted Almadex Minerals ( AAMMF ) , which held a 2% net smelter returns royalty on the project.

Almaden has agreed with Almadex to extend the maturity of its gold loan from March 31, 2026 to either March 31, 2030, or when Almaden receives any proceeds from its claims against Mexico (whichever is the earlier). In return, Almaden will pay Almadex 2% of the gross amount of any damages award that it may receive as a result of the legal claims, subject to certain conditions.

Almaden will also "streamline" management of the arbitration proceedings via a litigation management agreement. It will bear the up-front costs of the arbitration and provide overall direction to the arbitration process, including for Almadex Minerals ( AAMMF ).