Wigu Hill Expropriation by the Government of Tanzania
Montero Mining & Exploration Ltd. has settled with Tanzania for US$27,000,000 over the expropriation of its Wigu Hill rare earth project. Payments are scheduled as follows: US$12,000,000 received on 20 November 2024, with US$8,000,000 due by 31 January 2025, and a final payment ofUS$7,000,000 due by 28 February 2025.
Upon receipt of the final payment, Montero and Tanzania will request the ICSID arbitration be discontinued, concluding the 7-year dispute. The settlement represents 39% of Montero’s US$70,000,000 claim and avoids arbitration costs and risks.
Montero engaged Timothy Foden (Boies Schiller Flexner), Thierry Lauriol (Jeantet AARPI), and Dr. Neal Rigby (SRK Consulting) for the arbitration, with funding of US$2.32 million provided by Omni Bridgeway.
The first payment will be shared with Omni Bridgeway. The second will cover Omni, Montero’s operations, and legal expenses, while Montero will retain the final instalment. A potential shareholder return is under review, alongside reserves for legal, tax, and administrative costs. Updates on the net award will follow.