The company agreed to the amount to settle its dispute with Tanzania over the expropriation of the Wigu Hill REE project. Credit: LuYago/Shutterstock.

Montero Mining has finalised the distribution of a $27m settlement with its litigation funder Omni Bridgeway (Canada).

The company agreed to the amount to settle its dispute with the United Republic of Tanzania over the expropriation of the Wigu Hill rare earth element (REE) project.

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The amount accounts for approximately 39% of Montero’s initial $70m claim.

The first payment of $12m was received on 20 November 2024 and shared between Montero and Omni Bridgeway.

The second instalment of $8m is due by 31 January 2025 and will be allocated to Montero and for the settlement of all legal fees.

The final payment of $7m, expected by 28 February 2025, will be distributed entirely to Montero.

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After the payment of three installations to funders and legal costs, the settlement will see a net amount of approximately C$20.58m.

Montero CEO and president Tony Harwood said: “I am pleased Montero successfully achieved an amicable distribution of proceeds of over C$20,000,000. We wish Tanzania success in attracting new mining investments and look forward to receiving the final two payments due within the next five weeks. Further notice of payments received will be forthcoming.”

Following the receipt of the first payment, Montero and Tanzania have jointly requested the arbitral tribunal to suspend the International Centre for Settlement of Investment Disputes arbitration proceedings. The discontinuation of the arbitration will be formally requested upon the receipt of the final instalment.

Montero is currently contemplating a return of capital distribution to its shareholders, with the exact amount subject to an accounting review and board approval.

The company will also retain funds to manage legal, taxation and administrative expenses including potential costs for arbitral proceedings or any required enforcement actions. These responsibilities will now fall solely on Montero.

Additionally, the company is progressing with the Avispa copper-molybdenum project in Chile and seeking a joint venture partner.