Montero Secures US$2.32 Million Funding for Legal Proceedings Against the Government of Tanzania
Montero Secures US$2.32 Million Funding for
Legal Proceedings Against the Government of Tanzania
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES
Toronto, Ontario – January 8, 2021 – Montero Mining and Exploration Ltd. (TSX-V: MON or “Montero”) provides
the following update on arbitration activities related to the expropriation of the Wigu Hill rare earth element
Project (the “Project”) by the Government of Tanzania.
Montero is pleased to advise that it has completed a Litigation Funding Agreement (the “Agreement”) with
Omni Bridgeway Canada Limited (“Omni Bridgeway ”) an affiliate of the Litigation Funder. The Agreement
provides for funds to be drawn from a financing facility to meet all fees and expenses relating to the pursuit
of certain claims against the Government of Tanzania for the illegal expropriation and loss of the Project,
including all costs associated with legal proceedings and, if necessary, enforcement, of any a wards. Montero
has retained Mr Thierry Lauriol and his team at Jeantet AARPI (“Jeantet”) as highly experienced legal counsel in
international arbitration with a track record of success for its clients in Africa.
Dr Tony Harwood , President of Montero , com mented, “ Montero’s legal r epresentatives, Jeantet , backed by
the financial support of the Litigation Funder Omni Bridgeway , have been engaged to aggressively pursue
compensation for the illegal activities of the Government of Tanzania in expropriating the Wigu Hill rare
earth element Project. ”
Montero is not able to make any comment in relation to the potential quantum of an y claim for
compensation at this point.
As background, on January 17th, 2020 Montero delivered a Notice of Intent to Submit a Claim to Arbitration (“Notice
of Intent”) to the Attorney General of Tanzania in accordance with the 2013 Agreement for the Promotion and
Reciprocal Protection of Investments in the Bilateral Investment Treaty (“BIT”) between Canada and the United
Republic of Tanzania.
The dispute arises out of certain acts and omissions of the United Republic of Tanzania in breach of the BIT a nd
international law, relating to Montero’s investment in the Wigu Hill rare earth element project (“Wigu Hill”) located
in Tanzania. 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 valid for a period of 5 years.
In 2017 the Government of Tanzania announced amendments to the Mining Act 2010, whic h, inter alia, abolished
the legislative basis for the Retention License classification with no replacement classification. On 10th. January 2018
the Government published the Mining (Mineral Rights) Regulations 2018 which under Regulation 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 19 th, 2019 the Mining Commission of Tanzania announced a public invitation to tender for the joint
development of areas previously covered by Retention Licenses, including the area of the Wigu Hill Retention License
(December 19th Tender). The abolition of the Wigu Hill Retention 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 the Tanzanian Government, Montero has
lost completely its investment.
The Notice of Intent is necessary in order 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 no attempt was made by the Tanzanian Government to amicably settle the
dispute.
Montero has initiated international arbitration proceedings in accordance with the BIT between Canada and the
United Republic of Tanzania. Compensation being sought for expropriation of the Wigu Hill rare earth element
Project may include, but will not be limited to, the value of the historic investment made by Montero in
Tanzania, the value of the project at the time that tenure was expropriated and damages the Company has
suffered as a res ult of Tanzania’s acts and omissions.
About Montero
Montero is a junior exploration company focused on finding, exploring, and advancing globally significant gold
deposits in Chile. Montero’s board of directors and management have an impressive track record of successfully
discovering and advancing precious metal projects. Montero trades on the TSX Venture Exchange under the symbol
MON and has 38,547,485 shares outstanding.
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 FORWARD -LOOKING INFORMATION: This news release includes certain "forward -looking information"
within the meaning of applicable Canadian securities laws. Forward looking information includes, but is not limited to, state ments, projections
and estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or
“does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”
or “be achieved”. Such information is based on information 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 uncertainties that may cause
the actual results, level of activity, performance, or achievements of Montero to be materially different from those expresse d or implied by such
forward-looking information. Actual results relating to, among other things, completion of the HOA, results of exploration, project development,
reclamation and capital costs of Montero’s mineral properties, and financial condition and prospects, could differ materially from those currently
anticipated in such statements for many reasons such as: an inability to complete the HOA on the terms as announced or at all; changes in general
economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and
other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with
Montero’s activities; and other matters discussed in this news release 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 considered carefully and accordingly,
readers should not place undue reliance on forward-looking information. Montero does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.