Montero Receives Second $8 Million Payment from Tanzania Settlement

Montero Mining and Exploration Ltd. has confirmed the receipt of US$8 million from Tanzania, marking the second installment of a US$27 million settlement following the expropriation of its Wigu Hill project. A final payment of US$7 million is expected by February 28, 2025. The company is contemplating the distribution of funds to shareholders post-settlement.

On February 10, 2025, Montero Mining and Exploration Ltd. announced that it had received a second installment of US$8 million from the United Republic of Tanzania. This amount is part of a total US$27 million settlement related to the expropriation of Montero’s rare earth element project, Wigu Hill. The first announcement of this settlement was made on November 20, 2024.

The final installment of US$7 million is expected to be disbursed on or before February 28, 2025. The actual net amount that Montero will receive is still undetermined due to pending legal costs and expenses related to the expropriation settlement. After the final payment, the company plans to finalize its strategy regarding potential distributions to its shareholders, with an update anticipated in the second quarter of 2025.

Dr. Tony Harwood, President and CEO of Montero, expressed approval regarding the receipt of the second payment. He noted that further announcements concerning payment updates will be forthcoming, indicating the company’s continued engagement with the matter.

In relation to the ICSID arbitration, Montero and Tanzania have jointly requested to suspend proceedings following the initial settlement payment. Once the final installment is received, they seek to formally discontinue the arbitration. Montero is evaluating various options for distributing the settlement funds, including possible returns of capital to shareholders, but the specifics remain pending due to accounting reviews and board approvals.

It is important to recognize that the continuation of the ICSID arbitration and the payment of the remaining installment depend on Tanzania’s adherence to the settlement agreement. The agreement does not include any guarantees for Montero, which could lead to a resumption of arbitration or enforcement proceedings if necessary. Montero is currently advancing its operations, including its Avispa copper-molybdenum project in Chile and is seeking a joint venture partner.

In summary, Montero Mining and Exploration Ltd. has received a crucial second payment of US$8 million from Tanzania as part of their settlement regarding the expropriation of its Wigu Hill project. The forthcoming final payment of US$7 million is expected by the end of February 2025. The company is actively planning how to distribute these funds, with shareholder considerations in mind, while taking necessary precautions to manage legal and financial obligations.

Original Source: www.globenewswire.com