Montero Mining has successfully received the final US$7 million payment from Tanzania, concluding a US$27 million settlement related to the Wigu Hill rare earth project. The agreement, reached out of court, alleviates the need for further legal proceedings and allows Montero to consider distribution of the funds to shareholders following an internal review.
Montero Mining and Exploration Ltd. has announced the completion of a final payment of US$7 million from the government of Tanzania, concluding a lengthy dispute regarding the expropriation of the Wigu Hill rare earth element project. This US$27 million settlement resolves a legal battle that commenced when the Tanzanian government took control of the project, with Montero originally seeking US$70 million in compensation.
The settlement, concluded out of court in November 2023, required Tanzania to pay approximately 39% of Montero’s initial demand. Payment was structured in three installments, with US$12 million due by November 2024, followed by US$15 million in January and February 2025, culminating with a final payment on 4th March 2025. This resolution alleviates the need for a prolonged court hearing and mitigates risks associated with potential legal rulings.
Having invested approximately 15.5 million Canadian dollars since the project’s inception in 2008, Montero had previously sought an investment arbitration claim with the International Centre for Settlement of Investment Disputes (ICSID), which will now be discontinued. The company’s President and CEO, Dr. Tony Harwood, expressed satisfaction with the timely resolution of the settlement.
Dr. Harwood stated, “I am pleased Montero has timely received the third and final payment of US$7 million from Tanzania.” He indicated the company will address the financial aspects of the settlement, including covering legal costs incurred during the dispute. Furthermore, Montero is contemplating options to distribute the settlement funds to shareholders, with an announcement anticipated in the second quarter of 2025, after a thorough internal review.
Montero intends to retain a portion of the settlement funds to address any outstanding expenses related to the dispute. Efforts to obtain comments from Tanzania’s Attorney General and legal representatives were unsuccessful.
The settlement between Montero Mining and Exploration Ltd. and the Tanzanian government resolves a protracted legal dispute over the Wigu Hill project, with Tanzania paying a total of US$27 million. This agreement not only concludes litigation but also paves the way for Montero to distribute funds to shareholders after addressing associated legal costs. The resolution illustrates a significant step towards financial clarity for the Canadian firm after years of contention with the Tanzanian authorities.
Original Source: africanminingmarket.com
