Ontario pays God’s Lake $3.5M to give up claims

Vancouver — The Ontario Government has agreed to pay God’s Lake Resources (GLR-V) $3.5-million to give up its mining lease and claims on 35 sq. km of Kitchenuhmaykoosib Inninuwug (KI) First Nation traditional land.

The deal puts an end to the standoff between the company and the KI First Nation, where God’s Lake was apparently determined to explore this season and the KI were determined to stop them.

The 35-sq.-km of claims will now be incorporated into the roughly 23,000 sq. km of KI-related lands that the Ontario Government withdrew from mining and exploration in early March. The KI had long been asking for such a move, declaring a moratorium on mineral exploration on its traditional lands back in 2000.

As to the God’s Lake claims, the KI had particularly objected that mineral exploration around the Sherman Lake project would disturb sacred grounds in the area, with KI members vowing to block any work. God’s Lake, meanwhile, stated in its last press release that it was looking into security companies to ensure it could complete a drill program. The land deal looks to settle the matter.

KI Chief Donny Morris stated that the deal was bittersweet, with Ontario officials repeating mistakes of the past.

“KI is pleased that Ontario has acted to protect the KI sacred landscape but disappointed that GLR was able to apparently unjustly enrich themselves at the hands of tax payers,” Chief Morris stated.

In 2008, Chief Morris and five others were arrested and sent to jail for blocking Platinex (PTX-V) from exploring in the region. That dispute ended in the Ontario Government paying Platinex $5 million to relinquish its claims in the area, but only after the company had launched a $70-million lawsuit.

With the deal done God’s Lake is left with no property to explore. The company stated it will continue with mineral exploration in Ontario and “will focus on identifying and acquiring new mineral properties as they are presented.”

The $3.5-million payout represents a little under half the market capitalization of the CNSX-traded company, which has about 8.7 million shares out and was trading at a dollar before being halted for the news. The very thinly traded company has gone from 55¢ in late February to the dollar high on a total of 5 trades consisting of 11,000 shares traded.