Montero Delivers “Notice of Intent” to Submit a Claim to Arbitration Under Canada-Tanzania Agreement for Reciprocal Protection of Investment
Montero Delivers “Notice of Intent” to Submit a Claim to Arbitration Under
Canada-Tanzania Agreement for Reciprocal Protection of Investment
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES
Toronto, Ontario – January 17, 2020 – Montero Mining and Exploration Ltd. (TSX-V: MON or “Montero”) reports
that on January 17th, 2020 it has delivered a Notice of Intent to Submit a Claim to Arbitration (“Notice of Intent”)
to the Attorne y General of T anzania in accordance with the 20 13 Agreem ent for the Promotion and Recipr ocal
Protection of Investments in the Bilateral Investment Treat y (“BIT”) between C anada and the United Republic of
Tanzania.
The dispute arises out of certain ac ts and om issions of the United Repu blic of T anzania in breach of the BIT and
international law , relating to Montero’s investment in the Wigu Hill rare earth element project (“Wigu Hill ”)
located in T anzania. Montero commenced exploration activities on the Wigu Hill project in March 2008 when it
was held under Prospecting License. Montero subsequently, on advice from the Mining Commissioner , applied for
a Retention License in 2014 and this was granted in 2015 and was valid for a period of 5 years.
In 2017 the Government of Tanzania announced amendments to the Mining Act 2010, which , inter alia, abolished
the legislative basis for the Rete ntion License cla ssification with no replacement classification. On 10th. January
2018 the government published the Mining (Mineral Rights) Regulations 2018 which under Regu lation 21
cancelled all Retention Licenses issued prior to that date , which would cease to have any legal effect. The rights to
all areas under Retention Licenses were immediately transferred to the government of Tanzania.
On December 19th 2019, the Mining C ommission of Tanzania announced a public invitation to tender for the joint
development of areas previously covered by Retention Li censes, including the area of the Wigu Hill Reten tion
License (December 19th Tender). The abolition of the Wigu Hill Reten tion License and the remo val of the various
rights to the minerals conferred by this licence has rendered the Wigu Hill project valueless to Montero. Therefore,
as a direct consequence of the legislative , regulatory and other measures made by t he T anzanian government,
Montero has lost completely its investment.
The Notice of Intent is necessary in o rder to preserve Montero ’s rights to initiate arbitration should a resolution
with the Tanzanian government not be reached. The filing of the Notice of Intent initiates a six-month consultation
period between the parties during which time they are to attempt to amicably settle the dispute . If no amicable
settlement is reached in this period, then Montero may then initiate international arbit ration pro ceedings in
accordance with the BIT between Canada and the United Republic of Tanzania.
Montero confirms that it is taking all necessary actions to preserve its rights and to p rotect its inve stment in
Tanzania, and has retained international arbitration counsel to adv ise. Montero’s desire is to reach a mutually
acceptable outcome.
For more information, contact:
Montero Mining and Exploration Ltd.
Dr. Tony Harwood, President and Chief Executive Officer
E-mail: [email protected] Tel: +1 416 840 9197 | Fax: +1 866 688 4671. | www.monteromining.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWAR D-LOOKING INFORMATION: This news release includes certain "forward -looking information" within t he meaning of applicable
Canadian securities laws. Forwa rd-looking informat ion includes, bu t is not l imited to, statem ents, projections and estimates . Generally, forward -looking information can be
identified by the use of forward -looking terminology such a s “plans”, “expects” or “does not expect”, “is expected” , “budget”, “schedu led”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or re sults “may”, “could”, “would”, “might” or
“will be taken ”, “occur” or “be a chieved”. Such i nformation is based on info rmation currently available to Montero and Montero provides no assurance that actual results will
meet management's expectations. Forward -looking information by its very nature involves inherent risks and uncertai nties that may c ause the a ctual results, le vel of activity,
performance, or achievements of Montero to be materially different from those expressed or implied by such forward -looking information. Actual results relating to, among other
things, results of e xploration, project development, reclamation and capital costs of Montero’s mineral p roperties, and financial condition and prospects, could differ materially
from those currently a nticipated in such statements for many reasons such as: changes in general economic conditi ons and co nditions in the f inancial markets; changes in
demand and pr ices for miner als; litigation, legislative, environmental and other judicial, regulatory, politi cal and c ompetitive developments; technological and oper ational
difficulties encountered in connection with Montero’s activities; and other matters discussed in this news rel ease and in filings made with securities regulators. This list is not
exhaustive of the factors that may affect any of Montero’s forward -looking statements. These and other factors should be considere d carefully and accordingly, readers shoul d
not place un due reliance on forward -looking information. Montero does not undertake to update any forwa rd-looking information, except in accordance wi th applicable
securities laws.