Winshear Delivers Notice of Intent to Submit a Claim to Arbitration Under Canada-Tanzania Agreement for the Promotion and Rec...
January 10 2020 - 5:00PM
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 could 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 legislative basis for the Retention
Licence classification with no replacement classification. On
10 January 2018 Tanzania published the Mining (Mineral Rights)
Regulations 2018. Under Regulation 21 of said Regulations, Tanzania
cancelled all retention licences issued prior to 10 January 2018 at
which point they ceased to have any legal effect. The rights over
all areas under retention licences, including those under the SMP
Retention 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 abolition of the SMP Retention Licences and
the removal of the rights to the land conferred thereunder has
rendered the Project valueless. Thus, as a direct consequence of
the legislative, 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.
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