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Winshear Delivers Notice of Intent to Submit a Claim to Arbitration Under Canada-Tanzania Agreement for the Promotion and Reciprocal Protection of Investments
VANCOUVER, British Columbia, Jan. 10, 2020 (GLOBE NEWSWIRE) -- Winshear Gold Corp. ("Winshear" or the “Company") (TSX-V: WINS) reports that on January 10, 2020
About this update from Winshear Metals Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 10, 2020 (GLOBE NEWSWIRE) -- Winshear Gold Corp. (\"Winshear\" or the “Company\") (TSX-V: WINS) reports that on January 10, 2020 it delivered to the Attorney General of Tanzania a Notice of Intent to Submit a Claim to Arbitration (“Notice of Intent”) in accordance with the 2013 Agreement for the Promotion and Reciprocal Protection of Investments (Bilateral Investment Treaty or “BIT”) between Canada and Tanzania. Winshear has thereby formally notified the Tanzanian government that there exists an investment dispute between Winshear and the Government. The dispute arises out of certain acts and omissions of the United Republic of Tanzania in breach of the BIT and international law, relating to the Company’s investment in the SMP Gold Project located in SW Tanzania. The Company commenced exploration activities on the SMP Gold Project in 2006. Subsequently, the Company, through its Tanzanian subsidiary, applied for and was granted 4 Retention Licences which covered the mineral resource areas. Retention Licences were valid for a period of 5 years and could be extended for a second period of 5 years before applying for a Mining Licence. In 2017 the Government of Tanzania announced wide-ranging and severe amendments to the Mining Act 2010, which, inter alia, abolished the legislative basis for the Retention Licence classification with no replacement classification. On 10 January 2018 Tanzania published the Mining (Mineral Rights) Regulations 2018. Under Regulation 21 of said Regulations, Tanzania cancelled all retention licences issued prior to 10 January 2018 at which point they ceased to have any legal effect. The rights over all areas under retention licences, including those under the SMP Retention Licences, were immediately transferred to the government of Tanzania. On 19 December 2019, the Mining Commission of Tanzania announced a public invitation to tender for the joint development of areas previously covered by Retention Licences, including the SMP Retention Licences (the “19 December Tender”). The abolition of the SMP Retention Licences and the removal of the rights to the land conferred thereunder has rendered the Project valueless. Thus, as a direct consequence of the legislative, regulatory and other measures by Tanzania, the Company has lost completely its investm...