Friday, May 23, 2008

Platinex Lawsuit Targets MNDM Bureaucrats-Former ADM Gammon In Trouble

MNDM bureaucrats now on notice.Be careful what you say about First
Nation rights , you could end up in court.
Hopefully we see more lawsuits against Ontario's negotiators in the
KI/Ardoch fiasco.
Ironic that Platinex is claiming unjust enrichment. This is exactly the
claim First Nations should be making.
Mineweb
JUNIOR MINING
ALLEGED FAILURE TO CONSULT FIRST NATIONS
Platinex sues Ontario Govt over failure to enforce Big Trout claim
access

The battle rages on to force the Ontario Government to fulfill its
obligation to consult with a First Nation community as a junior
explorer sues over the government's alleged failure to help them
enforce the laws protecting its claims.
Author: Dorothy Kosich
Posted: Friday , 23 May 2008

RENO, NV -

Ontario junior explorer Platinex has filed a lawsuit against the
Ontario Government allegedly for failing in its duty to warn of
potential access problems to mining concessions on the Platinex Big
Trout Lake Property, and reported failure enforce the law around the
claims.

In March, six members of the Kitchenuhmaykoosib Inniuwug (KI) First
Nation were sentenced to six months in jail after ignoring a court
injunction allowing Platinex to commence drilling on what the KI band
insists is traditional territory.

Platinex claims that the Ontario provincial government failed to
consult with KI and it breached its duty to warn the company that the
government would not enforce the law concerning access to the Platinex
mining claims. The junior explorer holds 221 unpatented mining claims
and 81 mining leases covering 12,880 acres of the Nemeigusabins Lake
Arm of Big Trout Lake. James Trusler, President and CEO, has estimated
that the company has spent Cdn$5 million on what they believe is a
major chromium deposit.

In their claims, Platinex officials asserted that Ontario Minister of
Northern Development and Mines (MNDM) and its Ministry of Natural
Resources (MNR) should have fulfilled its obligation to consult with
aboriginal peoples in relation to exploration activity that may take
place under the Mining Act.

The plaintiffs have requested general damages in the amount of Cdn$50
million and special damage of $20 million.

"Notwithstanding that the obligation belongs to Ontario and not to
Platinex, Platinex has engaged in substantial discussions and
consultations with KI over a number of years in an effort to seek input
from KI respecting its Aboriginal values, to accommodate KI's concerns
and to discharge Ontario's obligation to consultant," according to the
complaint. Platinex said it has maintained regular contact with
various tribal organizations, the Band Council, and other KI officials.

Therefore, Platinex said Ontario "has been unjustly enriched by
Platinex's efforts to satisfy Ontario's obligation to consult in light
of Ontario's past failures to discharge its constitutional obligation
to consult. Platinex is in law entitled to be reimbursed for the
expenses incurred as a result of its discharge of Ontario's obligation
to consult."

Platinex said its most recent attempt to access its mining claims had
to be abandoned "when a large number of the KI community assembled en
masse and prevented Platinex employees and contractors from leaving the
airport in Big Trout Lake for the purpose of accessing the property. KI
threatened to arrest and imprison Platinex's representatives if they
either entered the community or attempted to access the property."

On December 14, 2007, a Thunder Bay court found Donny Morris, Jack
McKay, Bruce Sakakeep, Darryl Sainnawap, Cecila Begg, Samuel McKay,
Enus McKay and Evelyn Quequish in contempt. They have now been jailed
for more than two month.

Arnold Norman Yellowman, a member of the Aamjiwnaang First Nation near
Sarnia, Ontario, told the Sault Star that he is insured by the actions
of the KI 6 to keep Platinex from starting exploratory work near his
community. "If we continue to have mining or any other industry come
through our land, exploit it, and jeopardize our ecosystems, it's
really going to have a big impact on our future."

Jon Baird, President of Canada's Prospectors and Development
Association of Canada, said the jailing of the KI 6 was "sad and
disappointing. We hoped that the decision to take resource with the
courts could be avoided. ...There should have been scope for an
amicable, mutually beneficial, negotiated resolution to the dispute
without it escalating in the present, unfortunate outcome."

However, in its lawsuit, Platinex asserted that the company was never
warned by Ontario or any MNDM employee that any attempt to "exercise
its exploration rights and obligations under its claims and leases were
at risk of being frustrated by Ontario's failure to discharge its
obligation to consult or that Ontario was unable or unwilling to
enforce the rule of law in the Big Trout Lake area."

Instead, Platinex claimed that John Gammon, Assistant Deputy Minister,
Mines and Mineral Division, MNDM, told the company that "there would be
no further exclusions provided from Platinex's claims based on First
Nations concerns. Mr. Gammon knew or ought to have known that his
statements would be relied upon by Platinex and that his statements
compelled Platinex to attempt to commence exploration activities on its
claims at Big Trout Lake."