Montero finalises distribution of $27m settlement in Tanzania dispute
Canadian junior Montero Mining and Exploration said on Tuesday that it has finalised the distribution of its $27-million settlement with litigation funder Omni Bridgeway over the expropriation of its Wigu Hill rare earth element project in Tanzania.
The settlement, reached with the Tanzanian government, is being paid in three installments. The first payment of $12-million was received on November 20, with funds distributed between Montero and Omni Bridgeway.
The second payment of $8-million is due by January 31, and will cover Montero’s share and outstanding legal fees.
The final $7-million payment, due by February 28, will be fully allocated to Montero. After all deductions, Montero said it should receive about C$20.58-million, or $14.46-million, net.
“I am pleased Montero successfully achieved an amicable distribution of proceeds of over C$20-million. We wish Tanzania success in attracting new mining investments and look forward to receiving the final two payments due within the next five weeks,” said Montero president and CEO Tony Harwood.
Following the first payment, Montero and Tanzania jointly requested the suspension of arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID). The arbitration will be formally discontinued once the final payment is received.
Montero said it was considering a return of capital distribution to shareholders, though the exact amount remained undetermined pending an accounting review and board approval.
The company would also retain funds to cover legal, taxation, and administrative expenses, as well as potential enforcement actions if Tanzania failed to meet its payment obligations.
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