Indiana Resources Limited (ASX: IDA) ('Indiana' or the 'Company') provides the following update on legal activities in relation to its majority shareholding position in Ntaka Nickel Holdings Ltd ('NNHL', incorporated in the United Kingdom).
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. 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 Promo on and Protec on 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 par es can nego ate to reach a mutually acceptable outcome. Given numerous submissions have been provided to the Government over the last 2 years in rela on to this ma er, the Government is fully aware of the background and quantum of historic investment, work completed to date, along with a proposed development meline and budget to advance the Project to development.
No correspondence has been received by NNHL from the Government in rela on to this ma er to date.
Should an amicable resolu on 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 se lement of any dispute between NNHL and the Tanzanian Government. Through this forum NNHL can seek full compensa on for the loss suered through the revoca on of the Reten on 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 me tenure was expropriated, and damages the Company has suered 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 56.2Mt @ 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.1
Company Comment
Bronwyn Barnes, Non-Executive Chairman commented: '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.'
Shareholders should also be aware that such actions by the Tanzanian Government are not limited to Indiana with a total of ten licences related to other resource projects involving foreign investors having also been revoked. This is not an approach by a Government that encourages foreign investment and is a clear signal that funds invested into Tanzania are at risk of sudden and inappropriate seizure by the Government.
Background to Claim
In 2017, the Government of Tanzania introduced wide ranging and severe amendments to the Mining Act 2010, which, inter alia, abolished the legisla ve basis for the Reten on Licence classica on with no replacement classica on.
On 10 January 2018 Tanzania published the Mining (Mineral Rights) Regula ons 2018. Under Regula on 21 of these Regula ons, Tanzania cancelled all Reten on Licences issued prior to 10 January 2018 at which point they ceased to have any legal effect. The rights over all areas under Reten on Licences, including the Reten on Licence held for the Project, were immediately transferred to the government of Tanzania.
During the me from January 2018 to December 2019, the Company ac vely engaged with the Tanzanian Minister for Energy and Minerals and the Mining Commission in an effort to resolve a suitable tenure mechanism for the Project licence to be reinstated.
A submission presented to the Government in May 2018 included an applica on for Prospec ng Licence as recommended by Government Offcials. Following numerous visits to Tanzania and mee ngs with the Minister for Energy and Minerals, Mining Commission and other senior government offcials, a further submission was presented to the Minister for Energy and Minerals and the Mining Commission in October 2019 that outlined a four year work programme and a US$8 11 million proposed budget to progress the Project. At a mee ng on 9th December with the Minister for Energy and Minerals, the Mining Commission and other senior government offcials, the Chairman of Indiana was reassured that the Company's historic investment would be respected and the Government would shortly advise a process to agree an appropriate tenure for the Project.
At all mes Tanzanian Government representa ves reassured company representa ves, including Indiana Board members that visited Tanzania for the purpose of collabora ve engagement with the Government, that the historic investment of the Company would be recognised and that our rights would be respected and protected.
On 19 December 2019, the Mining Commission of Tanzania announced a public invita on to tender for the joint development of areas covered previously by reten on licences (the '19 December Tender'). It was a condi on of the 19 December Tender that the successful bidder compensate the previous reten on licence holder for its explora on costs incurred. This public invita on was not sent to the Company but was adver sed on the website for the Ministry of Energy and Minerals.
On 20 December 2019, the Mining Commission of Tanzania announced a revised public invita on to tender (the '20 December Tender'). The 20 December Tender removed the condi on that the successful bidder compensate the previous reten on licence holder for its explora on costs incurred.
Contact:
Bronwyn Barnes
Tel: +61 (0) 417 093 256
INDIANA RESOURCES LIMITED 
