Hut 8 Mining requests mediation proceedings with Validus Power

Hut 8 Mining announced that it has requested mediation proceedings to be commended with Validus Power Corp, a third-party supplier of energy to the company’s mining facility in North Bay, Ontario. On November 9, Hut 8 delivered a notice of event of default to Validus in respect of Validus’ breaches of certain obligations under the terms of the power purchase agreement between Validus and the company. Validus has subsequently suspended delivery of energy to the company’s mining operations in North Bay and delivered a notice of event of default alleging that Hut 8 failed to make certain payments related to the delivery of energy to the North Bay site, an allegation which the Company categorically denies. Hut 8 has therefore notified Validus that it intends to proceed to mediation pursuant to the terms of the PPA. As previously announced, the company is exploring alternatives to mitigate the impact of this dispute, including through organic and inorganic growth opportunities. The company will continue to monitor the situation and will provide additional updates in respect of the suspension of mining activities at North Bay, the mediation process and any further proceedings, if and as appropriate.