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Indiana Resources (ASX:IDA) has come out the beneficiary of a US$90M settlement to be paid by the government of Tanzania.
Following a desirable ruling in the International Centre for Settlement of Investment Disputes (ICSID), Indiana has already received an initial US$35M; will receive another US$25M by 25 October 2024, and then, a third US$30M by 30 March 2025.
Legal costs will be repaid by the first instalment with further funds put aside in case the East African country decides not to pay – something Indiana blatantly stated on Monday.
The company also pointed out the US$90M settlement is “82.5% of the original amount of the ICSID award of US$190M.”
“Distribution between the Claimants is currently being negotiated with a further announcement to be made in due course,” the company wrote on Monday.
The company will get back to exploration in South Australia.
“Following the cancellation of our licence for the Ntaka Hill Nickel Project in January 2018, we have pressed our claim for compensation for the loss of our investment in Tanzania,” Indiana EC Bronwyn Barnes said.
“The settlement amount that Tanzania has agreed to pay the Claimants represents over 82% of the original amount of the Award handed down by ICISID in July 2023 and, when completed, saves the Company considerable time and further costs in pursuing annulment and/or arbitration proceedings and enforcement activities.”
IDA last traded at 8.5cps.
