A “takings” lawsuit against the State of Montana by Canyon Resources (CAU-X) has been dismissed by the Montana Supreme Court, validating the state’s law prohibiting new precious metal mines from using cyanidation plants.
Canyon, which owned the Seven-Up Pete property near Lincoln, Mont., had launched the suit against the state on the ground that the cyanide statute was effectively an expropriation of its mineral rights without compensation, which is outlawed under the state constitution. The court found that in the absence of a mining permit, the company had not lost any rights as a consequence of the statute.
The court also ruled that the company’s leases on state land had lapsed because the company had not mined on them. Canyon had argued that the cancellation should have been held in abeyance while it challenged the cyanide statute.
A suit against the state filed in United States Federal Court is still pending, having been stayed awaiting the decision in the state court.
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