Northern Superior Resources Inc.
, Stock Forum
) has determined that it has lost the ability to access its very promising Thorne Lake, Meston Lake and Rapson Bay gold properties in northwestern Ontario, as well as its ability to realize the benefits of any value it has created from its exploration programs on the properties, as a result of the actions of third parties.
As a result, the company will not incur any further exploration expenditures on the properties.
According to the Northern Superior Resources press release
, after attempting to resolve the matter with the Government of Ontario, the company has been left with no option but to commence legal action against it to protect its investment and the interests of its shareholders and stakeholders.
Northern Superior yesterday filed a Statement of Claim in the Superior Court of Ontario against the Government of Ontario seeking among other things, damages consisting of amounts expended to date as well as for the lost value of the properties, which the company through independent valuation has estimated to be approximately $110 million dollars.
The circumstances that have led to the legal action are primarily the result of the actions and policies of the Government of Ontario relating to First Nations and in particular, of the Government of Ontario's failure to discharge its duty to consult with First Nations in the area where the properties are situated.
In addition, the Government of Ontario's actions to resolve other land access disputes in the area, including the withdrawal from mining of a large amount of territory in the area of the properties, have only served to exacerbate the situation for the company and to further damage the value of the properties.
Although certain actions by First Nations in the area also made continued exploration on the properties no longer possible, the company respects the inherent right of First Nations to decide whether to allow exploration in their traditional territory.
Northern Superior intends to issue additional press releases to provide further details of the circumstances that gave rise to the current situation and to update stakeholders on the status of the legal action as it progresses.
Northern Superior is a junior exploration company exploring for gold in the Superior Province of the Canadian Shield.
On Friday, Northern Superior lost 12.5% and was trading at $0.035 a share. The company had a market cap of $6.6 million, based on 188.7 million shares outstanding.