Winshear Gold Corp. has successfully concluded the settlement agreement with the United Republic of Tanzania in relation to its dispute regarding the SMP Gold Project. The Parties agreed on an amount of US$30 Million to settle the case and terminate the arbitration proceedings.

Winshear Gold Corp. is a Canadian-based minerals exploration company. The company sued Tanzania over cancellation of retention licenses for mineral rights issued prior to the 2018 mining regulations, following amendments to the Mining Act in 2017, and the transfer of the related mining rights to the government, including those held by the company’s local subsidiary for the SMP gold project.

The proceedings where instituted before the International Center for Settlement of Investment Disputes (ICSID) and the hearing of the same had already commenced. In Feb 2023, it was reported that a judgment would be issued within six months of the conclusion of the arbitration hearing. Later on, the two parties to the dispute decided to suspend arbitration and settle the matter under mutual understanding.

A statement released on the company’s website indicated that the parties agreed on an amount of USD.30 Million to settle the case and terminate the arbitration proceedings.

Winshear’s licenses were cancelled immediately after the government amended the Mining Act 2010, whose regulations subsequently cancelled all retention licenses, at which point they ceased to have any legal effect.

The government has removed Winshear’s ownership of the SMP Project, something that the company says by doing so; Tanzania breached its obligations to Winshear under the Canadian-Tanzania Bilateral Investment (BIT) and International law.

International Center for Settlement of Investment Disputes (ICSID) convention has been ratified by 158 states, including Tanzania.