Indiana Resources has updated the status of its on legal activities in relation to its majority shareholding position in Ntaka Nickel in Tanzania.
Ntaka Nickel (NNHL) has appointed a specialist investment arbitration law firm to represent its interests and advise on actions necessary to ensure its rights to the Licence are protected.
Since the last update provided to shareholders, Indiana’s Board confirms that it has received numerous approaches from experienced and respected International litigation funding firms interested in working with the Company to ensure its rights are protected and pursued.
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Indiana is encouraged by the level of interest and the feedback received thus far from the different litigation funders. NNHL and its lawyers are now working to engage a firm interested in providing litigation funding services.
Pursuant to the relevant provisions of the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United Republic of Tanzania for the Promotion and Protection of Investments, which entered into force in 1996 (the “BIT”), the Government of Tanzania and NNHL have now entered a six-month period wherein the parties can negotiate to reach a mutually acceptable outcome.
Given numerous submissions have been provided to the Government over the last 2 years in relation to this matter, the Government is fully aware of the background and quantum of historic investment, work completed to date, along with a proposed development timeline and budget to advance the Project to development.
No correspondence has been received by NNHL from the Government in relation to this matter to date.
Should an amicable resolution not be achieved within the six-month period, the Company can pursue its claims before ICSID. ICSID is housed within the World Bank and is the agreed forum for settlement of any dispute between NNHL and the Tanzanian Government.
Through this forum NNHL can seek full compensation for the loss suffered through the revocation of the Retention Licence for the Project. The quantum of the claim may include, but will not be limited to:
- the value of historic investments in Tanzania
- the value of the project at the time tenure was expropriated, and damages the Company has suffered as a result of Tanzania’s acts and omissions
Over US$60 million has been spent historically on exploration at Ntaka Hill that has included definition of a total (measured, indicated, inferred) JORC compliant (2013) resource of 56.2 Mt @ 0.63% Ni, 0.14% Cu, 0.2% Co for 356,380t of contained nickel, and the completion of feasibility studies and other predevelopment work programmes.
Bronwyn Barnes, Non-Executive Chairman of Indiana Resources comments:
“Whilst we remain very disappointed that the Tanzanian Government unilaterally revoked our Retention Licence and subsequently advertised the Project on its website as available to potential new investors without consultation, we have moved quickly to protect the interests of shareholders and protect their rights to their historic investment.
“With the support of our team of dedicated lawyers, we have moved quickly to compile historic information, and prepare our case for a potential arbitration.
"The level of interest we have received from parties on this matter, and particularly the number of unsolicited approaches we have had from reputable litigation funders, has been considerable and most encouraging, and we look forward to providing further updates on due course.”