Queen's Park has reached a monetary settlement with an Ontario junior miner to relinquish their mineral claims and resolve a heated dispute with a First Nation bands in northwestern Ontario.
The province will pay Platinex Inc. $5 million in return for the Toronto exploration company dropping its lawsuits against the Crown and Kitchenuhmaykoosib Inninuwug First Nation (KI) over the company's Big Trout Lake platinum property.
Through a mediation process, Platinex agreed to surrender its claims and leases for $5 million. If the property is developed into a mine over the next 25 years, Platinex receives a 2.5 per cent net smelter royalty.
In a Dec. 14 statement, Platinex president and CEO Jim Trusler was pleased the company was able to recover value for the property.
“It became apparent that the company was not going to be able to access the property. We can now focus on our other PGE and gold properties and the money will enable Platinex to execute its business plan.”
Trusler said the company plans to move forward with an exploration drilling program on its Shining Tree gold property in the Temiskaming area this winter.