- Winshear Gold (WINS) has signed a litigation funding agreement to support its legal battle with the Government of Tanzania
- Through an affiliate of U.S.-based private equity firm Delta Capital Partners Management LLC, the company will be able to draw from a financing facility to cover its costs
- The arbitration case relates to Tanzania’s decision to abolish the country’s retention licenses, effectively rendering Winshear’s investment in the SMP Gold Project valueless
- The company filed a notice of intent to begin legal proceedings in January this year, but the two parties have been unable to come to an amicable settlement
- Winshear Gold is currently steady at C$0.10 per share
Winshear Gold (WINS) has signed a litigation funding agreement to support its legal battle with the Government of Tanzania.
Through an affiliate of U.S.-based private equity and advisory firm Delta Capital Partners Management LLC, the deal allows funds to be drawn from a financing facility to cover all fees and expenses.
The case relates to the Tanzanian Government’s “expropriation of the SMP Gold Project” which occurred in January 2018.
In 2006, Winshear began exploration work at the SMP Gold Project, and subsequently applied – and was granted – four retention licenses which covered the mineral resource area. These licenses were valid for a period of five years, and were eligible to be renewed for a second five-year term before applying for a mining license.
In 2017, the Government of Tanzania unveiled sweeping changes to the country’s Mining Act 2010, which abolished the retention licenses and provided no replacement classification. All retention licenses issued prior to January 10, 2018, were cancelled and immediately transferred to the government.
Winshear says the abolishment of the licenses is not only in violation of the 2013 Agreement for the Promotion and Reciprocal Protection of Investments between Canada and Tanzania, but has also rendered its investment in the SMP Gold Project valueless.
The company filed a notice of intent to begin legal proceedings in January this year, but the two parties have failed to reach an amicable settlement.
“Winshear’s legal representatives, Lalive, backed by the financial support of [Delta Capital Partners], have been engaged to aggressively pursue compensation for the illegal activities of the Government of Tanzania in expropriating the SMP Gold Project,” said Mark Sander, President of Winshear Gold.
“Lalive is highly experienced in arbitration cases in Tanzania with a track record of success for its clients,” he added.
Winshear Gold is currently steady at C$0.10 per share, as of 1:12pm EST.