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Montero Agrees to Distribution of US$27 Million Settlement from Tanzania

By Harry Moran |
January 28, 2025

Montero Agrees to Distribution of US$27 Million Settlement from Tanzania

Montero Mining and Exploration Ltd. (TSX-V: MON) (“Montero” or the “Company”) announces that it has finalised the distribution of the US$27,000,000 settlement with its litigation funders, Omni Bridgeway (Canada). The settlement amount was agreed with the United Republic of Tanzania (“Tanzania”) in the dispute over the expropriation of Montero’s Wigu Hill rare earth element project (“Wigu Hill”).

The settlement amount of US$27,000,000 is payable over three instalments, and is to be distributed as follows:

  • First payment: US$12,000,000 received on November 20, 2024, and distributed between Montero and Omni Bridgeway (Canada), the Company’s litigation funder.
  • Second payment: US$8,000,000 due by January 31, 2025, to be distributed to Montero and to pay all legal fees.
  • Third payment: US$7,000,000 due by February 28, 2025, to be distributed entirely to Montero.

After paying funders and legal costs, the net amount due to Montero will be approximately C$20,577,545 (US$14,458,138).

Dr Tony Harwood, President and CEO of Montero commented: “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 5 weeks. Further notice of payments received will be forthcoming.”

ICSID Arbitration

Montero and Tanzania jointly requested the arbitral tribunal to suspend the ICSID arbitration proceedings after receiving the first payment. Upon receipt of the final payment as scheduled, the parties will formally request the tribunal to discontinue the ICSID arbitration in its entirety.

Distribution of Funds

Montero is considering a return of capital distribution to shareholders. The exact amount is yet to be determined and will be subject to accounting review and board approval. In addition, Montero will retain funds to cover legal, taxation, and administrative expenses, including potential costs for arbitral proceedings, or enforcement actions in the event of delays or non-payment of the second or third instalments. The latter will now be the sole responsibility of Montero. The net amount of the award after deducting payments to the funder and covering legal expenses, cannot be determined with certainty, and no guarantees can be provided. Further announcements will be made in due course.

Disclaimer

The conclusion of the ICSID arbitration and payment of the remaining instalments is conditional on Tanzania’s compliance with the settlement agreement. The agreement does not provide for any security for the benefit of Montero in case Tanzania would not pay any instalment, in which case Montero can either resume the ICSID arbitration or seek enforcement of the settlement agreement.

About Montero

Montero has agreed to a US$27,000,000 settlement amount to end its dispute with the United Republic of Tanzania for the expropriation of the Wigu Hill rare earth element project. The Company is also advancing the Avispa copper-molybdenum project in Chile and is seeking a joint venture partner. Montero’s board of directors and management have an impressive track record of successfully discovering and advancing precious metal and copper projects. Montero trades on the TSX Venture Exchange under the symbol MON and has 50,122,975 shares outstanding.

About the author

Harry Moran

Harry Moran

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Case Developments Commercial

Delaware Chancery Court Dissolves Litigation Funder Amid Partner Deadlock

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As reported by Law360, the court ruled to wind down the partnership between a hedge fund manager and a Florida-based personal injury attorney who jointly operated the funding business. The dispute involved Priority Responsible Funding and Settlement Funding LLC, entities that had been providing capital for litigation matters.

Rather than assigning fault to either party, the Chancery Court determined that the partners' falling out did not involve wrongdoing that would prevent an orderly dissolution. The ruling permits the business to be wound down under the court's supervision, a resolution that allows both sides to move forward without the protracted litigation that often accompanies contested partnership breakups.

The case highlights a less-discussed risk in the litigation funding industry: the internal dynamics between business partners and co-investors. While much of the regulatory and media attention around litigation finance focuses on funder-client relationships and disclosure requirements, the Delaware case underscores that the operational structures behind funding entities carry their own set of governance challenges.

The decision may serve as a reference point for other litigation funding ventures navigating partnership disputes, particularly as the industry continues to attract new entrants and capital from diverse financial backgrounds. The full decision is available through the Court of Chancery.

Case Developments Commercial

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The discovery effort is central to the shareholders' collection strategy. Plaintiffs argue that the communications could demonstrate that Argentina's state-owned banks and national airline function as "alter egos" of the government — a legal theory that, if successful, would allow them to pierce corporate structures and pursue assets held by those entities to satisfy the judgment.

The U.S. government's decision to back Argentina in the discovery fight underscores the diplomatic sensitivities at play. Sovereign discovery disputes of this scale raise complex questions about foreign government immunity and international comity. For the litigation finance industry, the case remains a closely watched test of whether third-party-funded enforcement actions against sovereign nations can ultimately yield meaningful recoveries on judgments of this magnitude.

Case Developments Commercial

U.S. Treasury Blocks Venezuela from Funding Maduro’s Legal Defense in Drug Trafficking Case

By John Freund |

The question of who pays for Nicolas Maduro's legal representation has become a flashpoint in his federal drug trafficking prosecution, after the U.S. government reversed course on allowing Venezuela to fund his defense.

As reported by Yahoo News, the Treasury Department initially granted a sanctions exception on January 9 permitting the Venezuelan government to cover Maduro's legal expenses, only to revoke the authorization hours later without explanation. Defense attorney Barry Pollack — who previously represented WikiLeaks founder Julian Assange — argued that Venezuelan law and custom require the government to pay the expenses of the president and first lady, and that Maduro cannot otherwise afford counsel.

Maduro and his wife, Cilia Flores, were captured by U.S. special forces during a nighttime raid in Caracas on January 3, 2026. Both pleaded not guilty on January 5 to charges including drug trafficking, narco-terrorism, conspiracy, and money laundering. Prosecutors allege Maduro exploited his 13-year presidency to assist drug traffickers.

Judge Alvin Hellerstein, presiding over the case in the Southern District of New York, is now weighing the funding dispute. Flores may still be eligible to receive government-funded legal representation. Delcy Rodriguez currently leads the Venezuelan government following Maduro's capture.

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