KEY POINTS
- Montero secured a $27 million settlement from Tanzania over the Wigu Hill REE project dispute.
- Final payments are expected by February 28, 2025, after which arbitration will be formally discontinued.
- The company is considering a shareholder distribution while also advancing its copper-molybdenum project in Chile.
Montero Mining has officially finalized the distribution of a $27 million settlement with litigation funder Omni Bridgeway (Canada), resolving its dispute with Tanzania over the expropriation of the Wigu Hill rare earth element (REE) project.
This settlement covers about 39 percent of Montero’s initial $70 million claim against the United Republic of Tanzania. The payment process is structured into three installments:
- The first payment of $12 million was received on November 20, 2024, and divided between Montero and Omni Bridgeway.
- The second installment of $8 million is expected by January 31, 2025, and will be used for further distribution and legal fees.
- The final payment of $7 million, set for February 28, 2025, will be allocated entirely to Montero.
According to Mining Technology, once all payments are completed and legal costs are covered, Montero will net approximately C$20.58 million ($14.46 million) from the settlement.
CEO confident in final resolution
Montero’s CEO and president, Tony Harwood, expressed satisfaction with the agreement, emphasizing that the company is pleased with the amicable resolution.
“I am pleased Montero successfully achieved an amicable distribution of proceeds of over C$20,000,000,” Harwood said in a statement. “We wish Tanzania success in attracting new mining investments and look forward to receiving the final two payments due within the next five weeks. Further notice of payments received will be forthcoming.”
Following the receipt of the first installment, Montero and Tanzania requested the arbitral tribunal to suspend proceedings at the International Centre for Settlement of Investment Disputes (ICSID). Moreover, the arbitration will be formally discontinued once the final payment is received.
Future plans and shareholder distribution
With the legal matter nearing full resolution, Montero is now considering a capital distribution to shareholders, though the exact amount will be determined after an accounting review and board approval.
At the same time, the company is reserving funds to cover legal, taxation, and administrative costs, including any remaining arbitration-related expenses or potential enforcement actions.
Beyond the settlement, Montero is advancing its Avispa copper-molybdenum project in Chile and actively seeking a joint venture partner to expand its operations.
