Court case against KGHM Ajax on hold - InfoNews

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Court case against KGHM Ajax on hold

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September 16, 2016 - 10:30 AM

KAMLOOPS - A court case against KGHM Ajax, the company behind the proposed Ajax Mine, is stalled.

Cicada Ventures, a Vancouver based natural resources company, has taken the mine’s proponent to court over property and drilling issues and seeks damages for breach of contract among others. However, before the case can move forward, a judge has ruled Cicada needs to put up a $25,000 security in case it loses.

The case focuses on property KGHM Ajax owns adjacent to the Ajax Mine project. While the Ajax Mine proponent owns the land, it doesn't own all the mineral claims below the surface; Cicada owns some and alleges KGHM Ajax drilled on property without proper permission in October 2014, and devalued the claims by doing so.

In court documents, Cicada’s lawyer describes the action as being akin to scratch ticket being scratched. Once the drilling was done and nothing of great value was discovered below the surface, the claims are worth much less.

The land may be used for structures if the potential mine moves forward, which means any minerals or metals underneath would be inaccessible.

Negotiations between the two companies over the sale of the claims to KGHM Ajax have been going since at least 2013, according to the court documents. There is a disagreement between the two companies about whether there was any agreement on purchasing the claims.

Due to the financial situation of Cicada, the amount of the security required was lowered from $62,352 — as requested by KGHM Ajax — to $25,000.

Cicada filed the civil claim against KGHM Ajax on May 13, 2016.

To contact a reporter for this story, email Brendan Kergin or call 250-819-6089 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

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