Winshear Seeks C$124,781,945 IN Damages from Tanzania
WINSHEAR SEEKS C$124,781,945 IN DAMAGES FROM TANZANIA
Vancouver, July 15, 2021
Winshear Gold Corp. (TSX-V: WINS) (“Winshear” or the “Company”) reports that it has filed its
Memorial with ICSID (The International Centre for Settlement of Investment Disputes), a part of
the World Bank group, outlining the nature and quantum of its claims against Tanzania for the
expropriation of the Company’s retention licences over the SMP Gold Project, located in SW
Tanzania. Tanzania’s expropriation of the SMP Gold Project breached its obligations under the
2013 Tanzania-Canada Bilateral Investment Treaty (the “BIT”).
The Memorial provides the basis for compensation to Winshear in the amount of
C$124,781,945, including interest which continues to accrue. The Company retained Ms Vikki
Wall of Haberman Illett, now part of the Kroll group of companies, as its quantum expert to
quantify the claim. LALIVE is representing Winshear in the arbitration process. On December 7,
2020, litigation funding was secured from Delta Capital Partners Management LLC .
Richard Williams, CEO of Winshear, commented “Establishing C$124,781,945 as compensation
for Tanzania’s expropriation of the SMP Gold Project is a very important milestone for Winshear.
Tanzania’s actions have rendered valueless years of investment in the country. We have made
every attempt to work with the Tanzanian Government to reach an amicable settlement since
they cancelled our retention licences but they have provided us no choice but to pursue the legal
route.”
Background
• Between 2006 – 2017 the Company acquired, explored and discovered a gold resource at
the SMP Gold Project (see Company news releases between 2006 – 2017 at
www.winshear.com)
• As of 2017, the Company held four Retention Licences which contained the entire mineral
resource defined to that date.
• In July 2017, without any consultation with industry participants and investors, the
Government of Tanzania passed new legislation abolishing the Retention Licence
classification.
• Representatives of the Tanzanian Government repeatedly reassured the Company that it
was not expropriating the SMP Gold Project and that matters would be resolved in due
course.
• On December 19 & 20, 2019, the Government of Tanzania put all of the area formerly
held by Winshear under retention licences out to tender, thereby completing the
expropriation of the SMP Gold Project.
• Tanzania and Canada entered into the BIT in 2013 to protect investors against
developments that included expropriation.
• In January 2020 the Company retained LALIVE, a law firm specializing in international
arbitration, to act on its behalf against Tanzania.
• In January 2020, the company served notice to the Government of Tanzania of its
intention to enter arbitration proceedings, triggering a 6-month notice period under the
BIT. The 6-month notice period was designed to provide Tanzania the opportunity to
enter into discussions with the Company to resolve the dispute. Tanzania did not respond
during the notice period.
• In July 2020, after Tanzania’s failure to respond to the notice, the Company initiated
arbitration proceedings with ICSID.
• In December 2020, the Company secured non-recourse litigation funding to cover all costs
related to the arbitration process. In return for covering the arbitration costs, the
litigation funder can recover part of any award made by the arbitral tribunal.
• The arbitration case is heard by a 3-person tribunal, and is expected to conclude in H1
2023.
Cautionary Statement
Readers are cautioned that there is no guarantee of a positive outcome in favour of the Company.
About Winshear Gold Corp
Winshear Gold Corp. is a Canadian -based minerals exploration company that is currently
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 downstream;
Winshear is investigating the project for potential to host significant volumes of potentially
minable gold resource.
For more information, please contact Irene Dorsman at +1 (604) 200 7874 or by e-mail at
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard Williams"
Richard Williams, CEO
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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.
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looking statements or forward-looking information, including the risks normally associated with arbitration
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