Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) announced that it has asked Validus Power Corp. (” Validus “), a third-party energy provider of the Company’s mining operation in North Bay, Ontario, to be recommended for mediation.

logo for Hut 8 Mining Corp.
Hut 8 served Validus with a notice of default for violations of several terms of the power purchase agreement between Validus and the Company on November 9, 2022. When Hut 8 allegedly failed to make certain payments relating to the delivery of energy to the North Bay site, Validus allegedly terminated the Company’s mining operations in North Bay and delivered a notice of default, which the Society absolutely rejects. Hut 8 has so informed Validus of its intention to mediate in accordance with the power purchase agreement’s provisions.
As was previously stated, the company is looking into solutions to lessen the effects of this disagreement, including potential for organic and inorganic expansion.
The Company will keep an eye on the situation and, as necessary, offer more updates on the mediation process, the suspension of mining operations at North Bay, and any other procedures.

Source: Prnewswire