Belgravia Hartford Capital Updates Shareholders on Ochoa Litigation and Future Strategies

Belgravia Hartford Capital's Litigation Update

Belgravia Hartford Capital Inc. (CSE: BLGV) recently shared important developments concerning the ongoing litigation with PolyNatura Corp. The case, known as Belgravia Hartford Gold Assets Corp. v. PolyNatura Corp., is currently taking place in the U.S. District Court for the District of New Mexico. At the heart of the litigation lies the interpretation of obligations outlined within the Royalty Agreement between the two entities.

Summary of the Current Status

The litigation has seen the court granting summary judgment in favor of PolyNatura on three out of four claims asserted by Belgravia. However, one crucial aspect regarding PolyNatura's obligations under the books-and-records inspection provision is still set to be evaluated at trial. On March 16, 2026, the court made two significant rulings: PolyNatura was ordered to deposit a total of $9,046.05 with the court clerk, reflecting damages associated with the books-and-records inspection provision. Additionally, the court imposed a sanction of $2,000 on PolyNatura's defense counsel for failing to meet pretrial scheduling deadlines, a move that emphasizes the seriousness of procedural compliance.

Following this deposit, the court rendered a final judgment on March 19, 2026, dismissing the remaining claim as moot. Currently, Belgravia's legal team is evaluating any potential post-judgment options available to them, including the possibility of appeals.

Continuity of Royalty Interest

Despite the litigation's developments, it is crucial to note that the overall royalty interest in the Ochoa polyhalite project remains fully intact. Under the Royalty Agreement, Belgravia holds a 75% royalty on water revenue generated and a 1% royalty on mining revenue from Ochoa, subject to a capped amount of $12.2 million. PolyNatura has acknowledged Belgravia's status as a royalty holder and affirmed that ongoing efforts in developing this project will be beneficial for both parties involved.

The Ochoa project itself stands as a notable entity, being the only large-scale polyhalite deposit in the Americas. With estimated resources exceeding 630 million tons at a remarkable grade of over 82%, the project boasts a mine life surpassing 50 years. Recent legislative changes in New Mexico, particularly the Strategic Water Supply Act enacted in April 2025, have further improved the project's strategic significance given the increasing demand for water supply in the Permian Basin, where the project is located.

Response to PolyNatura's Statements

Belgravia is also aware of a recent press release from PolyNatura that asserted several claims which Belgravia considers misleading. Notably, PolyNatura stated that all litigation claims were resolved in its favor without mentioning that the last claim was dismissed as moot only after they deposited the damages amount, essentially paying to settle rather than defending the claim in court. This statement raises questions about the accuracy of PolyNatura's account of the proceedings.

Furthermore, PolyNatura's claims regarding the number of law firms representing Belgravia are simply inaccurate; the company has only engaged four firms in this litigation, contrary to the claims made. Belgravia urges shareholders to critically assess statements made by PolyNatura and to refer to the public court records for factual information regarding the case.

Future Outlook

Looking ahead, PolyNatura has indicated plans to seek recovery of attorneys' fees, a matter that will ultimately be determined by the court based on the overall circumstances surrounding the litigation. Meanwhile, Belgravia remains committed to enforcing its contractual rights and maximizing the value of its Ochoa royalty for its shareholders. As their president and CEO, Mehdi Azodi, noted in a recent statement, the company is focused on exploring all available legal remedies while continuing to enhance shareholder value through its diverse investment portfolio, including holdings in Bitcoin and related assets.

In summary, Belgravia Hartford Capital's strategic focus will remain on leveraging the Ochoa project's substantial potential, while navigating ongoing legal challenges with diligence and integrity. The company looks forward to providing further updates as developments occur in both the litigation process and its operations.