Winshear Delivers Notice of Intent to Submit a Claim to Arbitration Under Canada -Tanzania Agreement FOR the Promotion and Reciprocal Protection of Investments
WINSHEAR DELIVERS NOTICE OF INTENT TO SUBMIT A
CLAIM TO ARBITRATION UNDER CANADA -TANZANIA
AGREEMENT FOR THE PROMOTION AND RECIPROCAL
PROTECTION OF INVESTMENTS
Vancouver, 10 January 2020
Winshear Gold Corp. ("Winshear" or the “Company") (TSX-V: WINS) reports
that on January 10, 2020 it delivered to the Attorney General of Tanzania a
Notice of Intent to Submit a Claim to Arbitration (“Notice of Intent”) in
accordance with the 2013 Agreement for the Promotion and Reciprocal
Protection of Investments (Bilateral Investment Treaty or “BIT”) between
Canada and Tanzania. Winshear has thereby formally notified the Tanzanian
government that there exists an investment dispute between Winshear and the
Government.
The dispute arises out of certain acts and omissions of the United Republic of
Tanzania in breach of the BIT and international law, relating to the Company’s
investment in the SMP Gold Project located in SW Tanzania.
The Company commenced exploration activities on the SMP Gold Project in
2006. Subsequently, the Company, through its Tanzanian subsidiary, applied for
and was granted 4 Retention Licences which covered the mineral resource
areas. Retention Licences were valid for a period of 5 years and co uld be
extended for a second period of 5 years before applying for a Mining Licence.
In 2017 the Government of Tanzania announced wide-ranging and severe
amendments to the Mining Act 2010, which, inter alia, abolished the legisla^ve
basis for the Reten^on Licence classifica^on with no replacement classifica^on.
On 10 January 2018 Tanzania published the Mining (Mineral Rights) Regula^ons
2018. Under Regula^on 21 of said Regula^ons, Tanzania cancelled all reten^on
licences issued prior to 10 January 2018 at which point they ceased to have any
legal effect. The rights over all areas under reten^on licences, including those
under the SMP Reten^on Licences, were immediately transferred to the
government of Tanzania.
On 19 December 2019, the Mining Commission of Tanzania announced a public
invitation to tender for the joint development of areas previously covered by
Retention Licences, including the SMP Retention Licences (the “19 December
Tender”).
The aboli^on of the SMP Reten^on Licences and the removal of the rights to the
land conferred thereunder has rendered the Project valueless. Thus, as a direct
consequence of the legisla^ve, regulatory and other measures by Tanzania, the
Company has lost completely its investment.
The Notice of Intent is necessary in order to preserve the Company’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 that six -month
period, the Company may then initiate international arbitration proceedings
against Tanzania in accordance with the BIT.
Winshear confirms that it is taking all necessary actions to preserve its rights
and protect its investments in Tanzania. The Company’s desire is for both
parties to reach a mutually acceptable outcome. If such an outcome is not
achieved within the next six months, the Company expects it will have no
alternative but to pursue its claims before an international tribunal and seek full
compensation for damages the Company has suffered as a result of Tanzania’s
acts and omissions. Winshear has retained international arbitration counsel to
advise.
The Company will consider any other actions necessary to ensure its rights are
preserved.
For more information please contact Irene Dorsman on (604) 210-8751.
ON BEHALF OF THE BOARD OF DIRECTORS
“Richard D. Williams”
Richard D. Williams, P .Geo
Neither the 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.