Settlement Reached Between Tanzania and Montero Mining Regarding…

Montero Mining has received the final US$7 million payment from Tanzania, concluding a US$27 million settlement related to the Wigu Hill rare earth element project dispute. The settlement avoids litigation and allows Montero to now assess shareholder distributions while retaining funds for related expenses.

Montero Mining and Exploration Ltd. has announced the successful completion of a US$7 million payment from the Tanzanian government, finalizing a longstanding dispute over the Wigu Hill rare earth element project. This settlement stems from a broader agreement resolving a legal battle initiated when Tanzania expropriated the project, resulting in a US$27 million total payment to Montero, significantly lower than the US$70 million originally sought by the company.

The arrangement involved a structured payment plan where Montero will receive US$12 million by November 2024, followed by US$15 million in two installments due by January and February 2025, culminating in the final payment by March 4, 2025. This resolution averts a protracted court hearing and mitigates risks associated with potential unfavorable rulings and enforcement challenges.

Since 2008, Montero has invested approximately 15.5 million Canadian dollars into the Wigu Hill project. Following this settlement, the Canadian firm will discontinue its investment arbitration claim with the International Centre for Settlement of Investment Disputes (ICSID). Dr. Tony Harwood, President and CEO of Montero, expressed his contentment with the timely receipt of funds, emphasizing the company’s ability to address financial responsibilities arising from the settlement.

Montero is evaluating options for distributing the received settlement funds to shareholders, which may include a return of capital. A definitive decision will be made following an internal assessment of legal, tax, and administrative expenses, with further announcements anticipated in the second quarter of 2025. The firm will retain a portion of the funds to address remaining liabilities associated with the dispute moving forward.

In conclusion, the settlement between Montero Mining and the Tanzanian government effectively resolves a prolonged conflict regarding the expropriation of the Wigu Hill project. The agreed amount of US$27 million, significantly less than the original claim, will be disbursed to Montero as outlined in a structured payment plan. The company is positioned to manage the financial implications of this settlement, potentially benefiting its shareholders in the process.

Original Source: africanminingmarket.com