A Sudbury exploration company that sued the Ontario government for allegedly failing to consult with a First Nation band in northwestern Ontario has lost its case in an Ontario Superior Court.
Northern Superior Resources was advised May 25 that a judge had ruled in favour of the province.
The company is refraining from making comment on the decision for now until its meets with its lawyers.
“In the coming days, the company will review the decision in greater detail together with its legal counsel before commenting further,” said a company release.
Northern Superior was seeking $25 million in compensation from the province for failing to protect its interests in a gold exploration play in northwestern Ontario. The company was forced to abandon its mining claims after a series of disputes with the Sachigo Lake First Nation community in 2011, including an alleged demand from the Aboriginal band that the junior miner pay them an “administration fee.”
When Northern Superior refused, the company claimed the community served them with an “eviction notice,” forcing them to stop exploration work and leave the area.
The company blamed the province for failing to properly consult with the community. A ruling in the company’s favour could have potentially resulted in revisions to the Ontario Mining Act.
The trial began on Oct. 5 and concluded Nov. 13. The ruling was expected back in early January.
Northern Superior originally filed a $110-million lawsuit in late 2013 to recover the $15 million it spent on exploration since 2006, plus the estimated future value of the three properties on Crown land as they worked toward a major gold discovery near the Manitoba border.
The company later dropped that figure to $25 million in an effort to reach a settlement with the province through mediation, but to no avail.
Northern Superior has other gold properties, including its Croteau Est property in Quebec and its Ti-pa-haa-kaa-ning in Northern Ontario.
