A Sudbury junior miner is suing the Ontario for $110 million for failing in its duty to consult with First Nations.
In an Oct. 25 release, Northern Superior Resources said it has lost the ability to access its gold properties in northwestern Ontario, specifically its Thorne Lake, Meston Lake and Rapson Bay gold projects.
Northern Superior filed a statement of claim in the Superior Court of Ontario against the Ontario government seeking damages for its capital spending to date and the lost value of the properties.
The company's argument is that the government has failed to “discharge its duty to consult with First Nations in the area where the properties are situated.”
Their gold properties are close to the Manitoba border and near the First Nations communities of Sachigo Lake and Kitchenuhmaykoosib Inninuwug (K.I.).
The area is well-known to the mining industry because of previous conflicts between two previous junior miners and K.I. that forced the Ontario government to withdraw from exploration 23,000-square-kilometres in 2012.
Tom Morris, president and CEO, said in a statement: “We are extremely disappointed that circumstances have caused us to resort to such drastic measures. However, we want to assure all shareholders and stakeholders that this action against the government of Ontario will in no way diminish the company’s commitment to exploration and advancement of its other mineral properties such as its TPK gold property in northwestern Ontario, or its Croteau Est and newly acquired Grizzly properties near Chibougamau, Quebec.”
The Sudbury junior miner has won numerous awards and recently obtained Progressive Aboriginal Relations Committed status from the Canadian Council for Aboriginal Business.
“Northern Superior cannot emphasize strongly enough the importance of the relationships developed with its other First Nation partners with whom the Company has negotiated working agreements,” said Morris.