Montero Mining and Exploration Ltd. has received a second payment of $8 million from Tanzania as part of a $27 million settlement regarding the expropriation of its Wigu Hill project. The final payment of $7 million is due by February 28, 2025. The company is weighing options for distributing funds to shareholders, subject to legal considerations and board approval.
Montero Mining and Exploration Ltd. has officially received the second installment of $8,000,000 from the United Republic of Tanzania. This payment is part of a total settlement of $27,000,000 resulting from Tanzania’s expropriation of Montero’s Wigu Hill rare earth element project, which was initially reported on November 20, 2024.
The remaining final installment of $7,000,000 is due by February 28, 2025. The net profits anticipated for the company cannot yet be accurately assessed as legal costs and expenses incurred during the settlement will be clarified after the final payment is received. Montero plans to announce updates regarding the fund distribution in the second quarter of 2025.
Dr. Tony Harwood, President and CEO of Montero, expressed satisfaction with receiving the second payment and affirmed the anticipation of the final payment due later this month. Following the reception of all funds, the parties involved will seek to discontinue the arbitration proceedings.
Montero is currently deliberating various avenues for distributing the settlement proceeds, including potential capital returns to shareholders. The specifics of such distributions remain undetermined pending review and company approval. The company will hold funds to cover any future legal or administrative expenses stemming from this matter.
The conclusion of the arbitration and final payment depends on Tanzania’s adherence to the settlement agreement. This agreement lacks a provision for compensation if payments are delayed or go unpaid, which could prompt Montero to recommence arbitration or pursue enforcement of the settlement. Montero has secured a $27,000,000 settlement to resolve its dispute with Tanzania, and in addition, is advancing its Avispa copper-molybdenum project in Chile. The company is also engaging with potential joint venture partners in this venture.
Montero Mining and Exploration Ltd. trades on the TSX Venture Exchange under the symbol MON and currently has 50,122,975 shares outstanding. Additionally, the company cautions that forward-looking statements regarding the settlement completion and distribution strategy are subject to inherent risks and uncertainties.
Montero Mining and Exploration Ltd. has successfully received an $8 million installment from the Tanzanian government as part of a larger $27 million settlement related to the expropriation of its Wigu Hill project. The final payment is expected to be completed by the end of February 2025, after which Montero will evaluate its distribution options for shareholders. The outcome of future legal and financial considerations will influence the company’s next steps in this ongoing matter.
Original Source: www.globenewswire.com
