The potential concerns you hold @R08 in relation to project...

The potential concerns you hold @R08 in relation to project funding, and how it is affected by Jiangxi Jinhui Lithium Co., Ltd are overstated.

Background
The dispute relates to the offtake agreement between Jinhui and Desert Lion Energy (Pty) Ltd. It has most likely been the result of a defect in the purchase and sale agreement (eg termination provisions).

Arbitration
Arbitration in Singapore is most likely a contractual provision. Non-Chinese companies used to prefer Hong Kong, but that jurisdiction is no longer reliable. Singapore is now the preferred locale for arbitration resolution with Chinese companies.

Average arbitration time is 11 months in Singapore. It is incorrect to refer to this claim as a "Legal Claim". It is a commercial dispute, to be settled by arbitration. I expect LPD's legal team will be preparing a brief to defend the claim, and consider any grounds for a counter-claim.

When submissions have been prepared by both Parties, then there will be greater clarity for Jinhui as to LPD's defence. At that point, the matter may be withdrawn by the Applicant (Jinhui).

If the matter goes to arbitration (and most commercial disputes settle prior), then any settlement will be relatively insignificant.

Funding
Funding is unlikely to be affected by this claim. Funders will have considered the potential liability as part of financial DD, and will have included the $4.5M as a risk factor. If funding was derailed by a $4.5M claim (<2% of the project cost), then competitors will be lodging spurious claims against every second company.

The worst outcome of the Jinhui claim is the distraction that it will cause to the project, by way of taking up senior management time.