Montero Mining and Exploration Achieves Settlement Success
Montero Mining and Exploration Ltd. (“Montero” or the “Company”) has successfully concluded a significant settlement amounting to US$27,000,000 with the United Republic of Tanzania. This settlement comes as a resolution to a prolonged dispute regarding the expropriation of Montero’s Wigu Hill rare earth element project, a key asset for the company's future development.
Breakdown of the Settlement Payments
The settlement funds will be distributed over three scheduled payments, which include:
First Payment Overview
The first payment of US$12,000,000 was received recently and has been allocated between Montero and its litigation funder, Omni Bridgeway (Canada). This initial payment marks a crucial step forward in the settlement timeline.
Expected Upcoming Payments
The second payment, totaling US$8,000,000, is due shortly, aimed at covering legal fees as well as allocated funds for Montero. Following that, a final payment of US$7,000,000 is anticipated, which will be fully allocated to Montero’s assets.
Net Amount Due to Montero
After the distribution of these funds and payment of associated costs, Montero expects to net approximately C$20,577,545 (around US$14,458,138), significantly bolstering its financial position.
Comments from Leadership
Dr. Tony Harwood, Montero’s President and CEO, expressed satisfaction with the amicable financial settlement. He noted, “I am pleased Montero successfully achieved an amicable distribution of proceeds of over C$20,000,000. We wish Tanzania success in attracting new mining investments.” Dr. Harwood’s comments highlight the hopeful future for collaborative efforts moving forward.
ICSID Arbitration Proceedings
Montero and Tanzania have jointly requested a suspension of the ICSID arbitration proceedings following the receipt of the initial payment. Once the final installment is received, they intend to formally request the tribunal to discontinue the ICSID arbitration entirely.
Distribution Plans for Montero’s Funds
Looking ahead, Montero is exploring the possibility of returning capital to its shareholders. While the precise amount remains undetermined and will be subject to accounting reviews and board approvals, it reflects the Company’s commitment to providing value to its stakeholders. Montero will also reserve funds for legal, taxation, and administrative expenses related to potential costs from any delays in future payments.
Commitment to Ongoing Projects
Amidst this financial middleware, Montero continues to advance its other projects, notably the Avispa copper-molybdenum project in Chile, while searching for suitable joint venture partners to enhance growth opportunities.
The Company’s Track Record
The board and management team at Montero hold an impressive history of successfully discovering and advancing projects in the realms of precious metals and copper, which positions the Company favorably in the mining sector.
Final Remarks
Montero emphasizes that the successful conclusion of the ICSID arbitration and the remaining payments hinge on Tanzania’s adherence to the settlement agreement; hence, they retain the right to pursue further legal actions if necessary. As always, updates will be provided to stakeholders as they become available.
Frequently Asked Questions
What is the amount of the settlement Montero agreed upon?
The settlement amount agreed upon is US$27,000,000 related to the Wigu Hill project dispute with Tanzania.
How will the settlement payments be distributed?
The settlement will be paid in three installments: US$12 million, followed by US$8 million and US$7 million respectively.
What are Montero’s future plans after receiving the settlement?
Montero plans to consider a capital distribution to shareholders, while also advancing its other project, the Avispa copper-molybdenum project in Chile.
Who is the President and CEO of Montero?
Dr. Tony Harwood holds the position of President and CEO of Montero Mining and Exploration Ltd.
What could happen if Tanzania fails to comply with the settlement?
If Tanzania fails to comply, Montero has the option to either resume arbitration or enforce the settlement agreement through legal avenues.
