Montero Mining has received the final $7 million payment from Tanzania, concluding a $27 million settlement regarding the expropriation of the Wigu Hill project. Initially seeking $70 million, Montero will use the funds to settle legal costs and may distribute returns to shareholders in 2025.
Montero Mining and Exploration Ltd has announced the successful completion of the final $7 million payment from the government of Tanzania. This payout concludes a lengthy legal dispute regarding the Wigu Hill rare earth element project, resolving an issue that stemmed from the government’s earlier seizure of the project. The entire settlement totals $27 million, signifying an agreement reached after Montero initially pursued $70 million in damages.
This agreement, finalized out of court in November 2023, necessitated Tanzania to make the settlement in multiple installments. Montero received $12 million by November 2024, followed by $15 million in two additional payments by January and February 2025. This arrangement concludes both the legal complications and mitigates the possibility of a drawn-out court case for Tanzania.
Since 2008, Montero has invested approximately 15.5 million Canadian dollars into the Wigu Hill project. After failed attempts at an amicable resolution, Montero moved forward with an investment arbitration claim to the International Centre for Settlement of Investment Disputes (ICSID), which will now be dropped due to the settlement.
Montero’s President and Chief Executive Officer, Dr. Tony Harwood, commented on the situation, expressing satisfaction that the third and final payment of $7 million has been timely received. This allows the company to address the financial aspects of the settlement, covering legal costs related to the dispute.
The company is also deliberating on how to allocate the settlement funds to its shareholders, potentially considering a return of capital distribution. A final decision regarding this will follow an assessment of the relevant costs, with an announcement anticipated in the second quarter of 2025. Meanwhile, Montero plans to retain some funds to manage any outstanding expenses concerning the dispute, which will remain their responsibility going forward.
The completion of the final $7 million payment from Tanzania to Montero Mining signifies the conclusion of a protracted legal battle over the Wigu Hill project. This settlement, ultimately amounting to $27 million, allows Montero to manage legal expenses and consider shareholder distributions. The resolution spares both parties from the potential complexities of a prolonged court case and investments made in the project since 2008.
Original Source: www.thecitizen.co.tz
