Montero Delivers “Notice of Intent” to Submit a Claim to Arbitration Under Canada-Tanzania Agreement for Reciprocal Prote...
January 17 2020 - 4:49PM
Montero Mining and Exploration Ltd. (TSX-V: MON) (“Montero”)
reports that on January 17, 2020 it has 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
and 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 and was
valid for a period of 5 years.
In 2017 the Government of Tanzania announced
amendments to the Mining Act 2010, which, inter alia, abolished the
legislative basis for the Retention License classification with no
replacement classification. On January 10, 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, 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
19 Tender). The abolition of the Wigu Hill Retention License
and the removal 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 they are to attempt to
amicably settle the dispute. If no amicable settlement is reached
in this period, then Montero may then initiate international
arbitration proceedings in accordance with the BIT between Canada
and the United Republic of Tanzania.
Montero confirms that it is taking all necessary
actions to preserve its rights and to protect its investment in
Tanzania, and has retained international arbitration counsel to
advise. Montero’s desire is to reach a mutually acceptable
outcome.
For more information,
contact:Montero Mining and Exploration
Ltd.Dr. Tony Harwood, President and Chief
Executive OfficerE-mail: ir@monteromining.com 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,
statements, 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 expressed or implied by such
forward-looking information. Actual results relating to, among
other things, 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: 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.
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