Montero Mining has received the final US$7 million payment from Tanzania, resolving a dispute over the Wigu Hill project with a total settlement of US$27 million, significantly less than the initial US$70 million claim. The structured payment plan will complete by March 2025. Montero plans potential shareholder distributions from this settlement while addressing remaining expenses.
Montero Mining and Exploration Ltd. has received the final US$7 million payment from the Tanzanian government, concluding a long-standing dispute over the Wigu Hill rare earth element project. This resolution follows a US$27 million settlement in a legal battle that started when the Tanzanian government took control of the project. Initially, Montero sought US$70 million in compensation, making the final agreement approximately 39% of the original claim.
The settlement was structured in three installments, with Montero having received US$12 million by November 2024. The remaining two payments, amounting to US$15 million, are scheduled for January and February 2025, with the final payment due on March 4, 2025. This resolution not only ends the dispute but also avoids potential legal complications for Tanzania.
Montero has invested about 15.5 million Canadian dollars since the project’s inception in 2008. Despite prior attempts for an amicable resolution, the company had initiated an arbitration claim with the International Centre for Settlement of Investment Disputes (ICSID), which will now be withdrawn following the settlement.
Dr. Tony Harwood, President and CEO of Montero, expressed his satisfaction with the settlement process. He stated that the company would address various financial dimensions linked to the settlement, including legal expenses incurred during the conflict. Montero is also exploring distribution options for shareholders from the settlement funds, with a potential capital return being discussed, pending an internal review due to conclude in the second quarter of 2025.
A portion of the settlement will be retained to manage ongoing expenses related to the dispute, which will remain Montero’s responsibility. Efforts to obtain comments from Tanzanian legal representatives were unsuccessful.
In conclusion, the settlement of US$27 million between Montero Mining and the Tanzanian government effectively retires a lengthy legal dispute regarding the Wigu Hill project. This agreement, significantly less than the original claim, allows both parties to avoid the uncertainties of a court trial. Montero’s leadership indicates a focus on shareholder returns and addressing remaining expenses, highlighting the broader financial implications of the resolution.
Original Source: africanminingmarket.com
