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Playing our part in safeguarding mining rights and investment in Tanzania

August 15, 2022

Montero Mining has quantified its compensation claim against the Tanzanian government for the illegal expropriation of its Wigu Hill Rare Earth Element Project in the country. The company’s CEO Tony Harwood sheds some light on the significance of the claim for the company and mining investment in Tanzania.

 

Q: Montero has now submitted a CAD$90 million claim to the International Centre for Settlement of Investment Disputes (ICSID) for the illegal expropriation of its mining rights in Tanzania. Why are you driven to pursue this claim?

A: We are committed to ensuring fair treatment of our shareholders and obtaining a return on the substantial value created by ploughing our time, expertise and investment into Tanzania. Our claim of CAD$ 90 million has been calculated by our independent mining and valuation expert as an estimate of the value we have created for our share of the Wigu Hill project. The arbitration process is fully and independently funded on a non-recourse basis. Winning the arbitration will compensate our shareholders for our loss of the project.

 

Q: The ICSID has a good track record of resolving mining disputes in Africa. What are the other factors that make you optimistic about a positive outcome for Montero?

A: In short, the Tanzanian government violated an investment treaty with Canada and expropriated a valid retention license held by Montero, without compensating us for the substantial investment we have made. The damages claimed are for the Tanzanian government’s unlawful expropriation of the license and mistreatment of Montero’s investment in Tanzania; its actions are in breach of the agreement between the governments of Canada and Tanzania for the Promotion and Reciprocal Protection of Investments (“Bilateral Investment Treaty”) signed in 2013. The Tanzanian government expropriated the Wigu Hill retention license in 2018 when it cancelled all previously issued retention licenses. It first issued us a five-year retention license on the property in 2015.

 

Q: Montero is not the only company that has filed arbitration procedures against Tanzania for the expropriation of retention licenses. Is there still a possibility that the country will come to the table and recognize the investment rights of Montero? 

A: The company is open to an amicable settlement. While this did not appear to be an option with the former President, we are confident that Tanzania’s new President may favour an out-of-court settlement, which would be in the interest of both parties. Montero’s first choice would be to settle the matter.

 

Q: How does Montero see the role of the greater mining industry when it comes to protecting mining rights around the world?

A: When I first visited Tanzania in the early 1990s I saw little exploration being done but immense potential for discovering gold. I saw Tanzania introduce its first mining policy in 1996, aiming to transform the industry and the country. This policy and the Mining Act of 1997 laid out a 25- to 30-year vision that would see the sector’s contribution to GDP grow from 1.5% in 1996 to over 10%. I saw the discovery and development of major gold mines and Tanzania being lauded as the number one mining investment destination in Africa. I played a part in this development working for Ashanti, Barrick and Placer Dome.

 

Tanzania has seen significant economic development on the back of mining investment, boosting the country’s GDP, enhancing local skills and bringing significant   tax benefits to its people. Surely this is something to be proud of as a mining industry. Standing up for our rights in this arbitration process, I believe, will bring mining investment back to Tanzania at a time, after COVID-19, when it is most needed.

 

Q: Montero invests most of its capital in the ground. Will a paid compensation claim help to accelerate your gold and copper projects in Chile?

A: Montero is an exploration company that is committed to creating value for its shareholders. A compensation claim should benefit our faithful shareholders.

 

Q: Your company is focused on “thorough and fast” exploration in Chile while you are pursuing the claim for Wigu Hill.  What is the next milestone that you will reach in Chile?

A: Exploration results from our hard work!

 

 

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For more information, contact:

Montero Mining and Exploration Ltd.
Dr. Antony Harwood, President and Chief Executive Officer
Email: 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 with respect to the Offering. 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, approval and completion of the Offering whether or under the terms described above or not, results of exploration, project development, reclamation and capital costs of Montero’s mineral properties, and Montero’s 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.