Montero Announces Share Consolidation and C$15M Return of Capital

Core Viewpoint - Montero Mining and Exploration Ltd. has finalized its planned uses of the net proceeds from a US$27 million settlement with the United Republic of Tanzania regarding the expropriation of its Wigu Hill rare earth element project, which includes a share consolidation and a cash distribution to shareholders [1][11][14]. Financial Settlement and Cash Position - The settlement with Tanzania totaled US$27 million, with payments received in three installments: US$12 million on November 20, 2024, US$8 million on January 31, 2025, and US$7 million on March 4, 2025 [11]. - Following the settlement, the company holds approximately C$18.4 million in cash after accounting for litigation funding, legal fees, expenses, and current liabilities [12]. - The company plans to retain about C$3.4 million for further exploration at its Avispa copper-gold project and to evaluate new opportunities [4][13]. Share Consolidation and Distribution - Montero intends to consolidate its common shares at a ratio of six pre-consolidation shares for one post-consolidation share, resulting in approximately 8,353,829 shares outstanding post-consolidation [2]. - The company seeks shareholder approval to distribute approximately C$15 million, equating to C$0.30 per common share pre-consolidation or C$1.80 post-consolidation [3][5]. - A special meeting for shareholder approval of the distribution is scheduled for June 11, 2025, requiring at least two-thirds approval from votes cast [4][13]. Regulatory and Procedural Details - The consolidation will not require shareholder approval, but it is subject to regulatory approvals, including from the TSX Venture Exchange [6]. - No fractional shares will be issued; fractional interests will be rounded to the nearest whole share [7]. - Registered shareholders will receive instructions for exchanging their share certificates, while non-registered shareholders will not need to take action [8].