Montero Mining received US$7 million from Tanzania, concluding a US$27 million settlement stemming from the expropriation of the Wigu Hill project. The company will determine final proceeds after expenses and plans to update shareholders on fund distributions in Q2 2025. Montero will also request to terminate arbitration proceedings with ICSID.
Montero Mining and Exploration Ltd. (TSX-V: MON) announced the receipt of US$7 million from the United Republic of Tanzania, marking the final payment of a US$27 million settlement related to the expropriation of Montero’s Wigu Hill rare earth project. This final installment is anticipated to resolve the dispute that was previously addressed before the International Centre for Settlement of Investments Disputes (ICSID).
As the final installment has been received, Montero will now ascertain the ultimate net proceeds after accounting for legal costs and other expenses incurred during the defense and settlement process. The company plans to finalize the distribution of these funds, which could include a return of capital to shareholders, with further announcements expected in the second quarter of 2025.
Dr. Tony Harwood, President and CEO of Montero, expressed satisfaction with the timely receipt of the final payment. Following this payment, Montero and Tanzania will formally request the ICSID tribunal to discontinue arbitration proceedings altogether, given the successful settlement of the dispute.
Montero is evaluating various options regarding the distribution of the settlement amounts while ensuring all legal, tax, and administrative expenses are adequately covered. The specific distribution methods and amounts will be subject to accounting reviews and approvals from the board of directors, with continued updates promised to stakeholders.
Montero aims to solidify its future prospects by advancing its Avispa copper-molybdenum project in Chile and actively seeking a joint venture partner. The firm’s management has a history of efficiently managing precious metal and copper projects and currently has approximately 50 million shares outstanding listed under the TSX Venture Exchange.
In conclusion, Montero Mining’s receipt of the final payment from Tanzania signifies a substantial closure to their legal dispute over the Wigu Hill project. The company is now focused on determining how to allocate these funds while considering shareholder returns and managing its future projects. This development marks a pivotal moment for Montero as it aims for new ventures following the resolution of this longstanding issue.
Original Source: www.juniorminingnetwork.com
