Montero Mining and Exploration Ltd. has received US$8 million from Tanzania, marking the second installment of a US$27 million settlement related to the expropriation of the Wigu Hill project. The final payment of US$7 million is due by February 28, 2025, and the Company is reviewing options for fund distribution to shareholders. An update on these plans will be provided in Q2 2025.
Montero Mining and Exploration Ltd. has confirmed the receipt of US$8 million from the United Republic of Tanzania as the second installment of a US$27 million settlement regarding the expropriation of its Wigu Hill rare earth element project. This payment follows the initial installment received, and the final payment of US$7 million is expected by February 28, 2025. Montero’s net proceeds from the settlement will be influenced by legal expenses related to the expropriation recovery efforts, which will be assessed after receipt of the final payment.
The Company anticipates evaluating its options for fund distribution to shareholders, including potential return of capital, with a decision expected during the second quarter of 2025. Dr. Tony Harwood, President and Chief Executive Officer of Montero, expressed satisfaction with the receipt of the second payment and the upcoming final installment. Furthermore, both parties involved have sought to suspend ongoing ICSID arbitration proceedings in light of the settlement agreement.
As part of the strategic plan, Montero will allocate funds not only for shareholder distribution but also for future legal, taxation, and administrative expenses, including contingencies for delays in the final installment. Any future announcements regarding the distribution of these proceeds will be made in due course, with a reminder that the completion of the ICSID arbitration is conditional upon Tanzania’s adherence to the settlement terms.
In summary, Montero Mining and Exploration Ltd. has successfully received the second installment of US$8 million from Tanzania and anticipates a final payment by the end of February 2025. The Company is considering the distribution of settlement proceeds to shareholders while preparing for associated legal expenses. Future updates regarding these matters will be communicated in the second quarter of 2025, alongside the potential discontinuation of arbitration proceedings with Tanzania.
Original Source: www.globenewswire.com
