Winshear Gold Corp (TSXV: WINS) has reached a $30 million agreement with the Tanzanian government, resolving a longstanding license dispute for the SMP project. Announced Monday, the deal leaves Winshear with about $18.5 million post-deductions for legal and funding costs.
Previously, Winshear sought upwards of $96 million in damages. The claim, filed with the International Centre for Settlement of Investment Disputes (ICSID), followed alleged treaty breaches by Tanzania.
Since 2006, Winshear has been active in the SMP area, uncovering a significant mineral resource. After this, they obtained four crucial retention licenses.
However, 2017 brought drastic changes. Tanzania amended its mining regulations, erasing the “retention license” status. Consequently, Winshear lost its licenses in 2018, and the state assumed rights.
According to a report by Mining.com, the situation worsened in late 2019. Tanzania’s Mining Commission sought public bids for areas once under Winshear’s control. Due to these actions, the company found its project stripped of value.
Alleging “unjust appropriation,” Winshear turned to international arbitration in July 2020. They demanded fair compensation for their initial investment and the project’s lost value.
Winshear CEO Richard Williams welcomed the settlement recently. He sees it as beneficial for both sides and expressed optimism for Tanzania’s investment climate.
Notably, Winshear isn’t alone. It’s part of a list, including Indiana Resources (ASX: IDA), seeking redress from Tanzania through ICSID. In a similar vein, Indiana Resources settled earlier this year, clinching a $109 million award for its Ntaka Hill nickel project’s wrongful seizure.
