Winshear GOLD Comments ON Move IN Share Price
WINSHEAR GOLD COMMENTS ON MOVE IN SHARE PRICE
Vancouver, July 18, 2023
Winshear Gold Corp. (TSXV: WINS) (‘Winshear’, the ‘Company’, or the ‘Claimant’), formerly
Helio Resource Corp., provides the following update on the recent move in its share price, which
is related to the Company’s fully funded arbitration proceedings against the Tanzanian
Government to recover its investment and damages for the expropriation of its SMP Gold Project
in Tanzania.
Richard Williams, CEO of Winshear, stated: “We learned this morning that ASX listed Indiana
Resources has been awarded US$109.5 million in its international arbitration case against
Tanzania in addition to an order for Tanzania to repay US$3,859,161 in legal costs and expenses.
It is reassuring that the ICSID tribunal in the Indiana case against Tanzania recognised the
damage done to shareholders, investors and Indiana when the Tanzanian government decided
to abolish Retention Licences without consulting the investor community. Indiana’s arbitration was
conducted through the World Bank’s International Centre for Settlement of Investment Disputes
(“ICSID) and concluded two weeks prior to Winshear’s arbitration proceedings at ICSID against
Tanzania in February 2023. We look forward to receiving the outcome of our case against
Tanzania.”
Winshear and Indiana are separately seeking to recover costs and damages from the government
of Tanzania, through the ICSID arbitration process, for the expropriation of Retention Licenses
that covered their respective flagship exploration projects. The ICSID Convention has been
ratified by 158 States, including Tanzania. An award issued by an ICSID tribunal is enforceable
in any one of those 158 member States as if it were a judgment of one of their own courts.
Background to Winshear’s Claim
In July 2017, the Government of Tanzania amended the Mining Act 2010 by, inter alia, abolishing
the Retention Licence classification. The Company’s SMP Mineral Resource was wholly
contained within four Retention Licences.
On 10 January 2018, Tanzania published the new Mining (Mineral Rights) Regulations 2018,
which cancelled all Retention Licences at which point they ceased to have any legal effect. The
rights over all areas under Retention Licences, including the Retention Licences held for the SMP
Gold Project, were immediately transferred to the Government of Tanzania.
During the time from January 2018 to December 2019, the Company actively engaged with the
Tanzanian Ministry for Minerals and the Mining Commission in an effort to resolve a suitable
tenure mechanism for the Project Licence to be reinstated, without success.
On 19 December 2019, the Mining Commission of Tanzania announced a public invitation to
tender for the joint development of areas covered previously by Retention Licences. The invitation
provided that the successful bidder should compensate the previous Retention Licence holder.
On 20 December 2019, the Mining Commission of Tanzania announced a revised public invitation
to tender, which removed the condition that the successful bidder c ompensate the previous
retention licence holder.
Through the measures described above, Tanzania has removed the ownership of the Project
from the Claimant, and the Claimant alleges that Tanzania, in doing so, has breached its
obligations to the Claimant under the Canadian -Tanzania BIT and international law. These
include, but are not limited to:
1. Tanzania’s obligation not to nationalise or expropriate the Claimant’s investments or
subject them to measures having effect equivalent to nationalisation or expropriation
without prompt, adequate and effective compensation under the BIT; and
2. Tanzania’s obligation to accord fair and equitable treatment and full protection and security
to the Claimant’s investment and not to impair by unreasonable or discriminatory
measures the maintenance, use, enjoyment or disposal of the Claimant’s investment
under the BIT.
Under the BIT, the evidentiary hearing in Washington was video recorded and is available to the
public for review. Winshear has provided a link to the video in the April 4, 2023, press release on
its website.
Winshear is represented by the same international law firms that represented Indiana in th e
arbitration process: LALIVE LLP and Boies Schiller Flexner LLP. Both firms specialise in
international arbitration with Winshear seeking compensation in excess of CDN$130M for
the loss of its investment in Tanzania (including interest which continues to accrue). In
addition, the Winshear is seeking reimbursement of its arbitration costs and fees by
Tanzania.
A litigation funding facility for US$3.3M is in place with Delta Capital Partners Management
(“DELTA”), a firm out of headquartered in Chicago Illin ois that specializes in litigation
funding. This funding facility covers all legal costs associated with arbitration and is only
repayable in the event of a successful award that is recovered from the United Republic of
Tanzania.
About Winshear Gold Corp.
Winshear Gold Corp. is a Canadian -based minerals exploration company advancing the
Gaban Gold Project in the Puno region of Peru. Gaban is a possible hard -rock source for
the modern-day alluvial gold rush underway in the Madre de Dios basin dow nstream.
The Company is in the process of concluding fully funded arbitration proceedings against
the Tanzanian Government to recover its investment and damages for the expropriat ion of
its SMP Gold Project in Tanzania.
For more information, please con tact Irene Dorsman at +1 (604) 200 7874 or visit
www.winshear.com
ON BEHALF OF THE BOARD OF DIRECTORS
“Richard D. Williams”
Richard Williams, CEO
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.
Cautions Regarding Forward-Looking Statements
This news release includes certain statements and information that may contain forward-looking information
within the meaning of applicable Canadian securities laws. All statements in this news release, other than
statements of historical facts, are forward-looking statements and contain forward-looking information.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as
"intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or
results "may", "could", "should", "would" or "occur". Forward-looking statements are based on the opinions
and estimates of management as of the date such statements are made and they are subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from those expressed or implied by such forward-
looking statements or forward-looking information, including the risks normally associated with arbitration
cases. Although management of the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward -looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements and forward-looking information. The Company does not undertake to
update any forward-looking statements or forward-looking information that are incorporated by reference
herein, except in accordance with applicable securities laws.