International Montoro Resources Inc. (“IMT”), reports that the Company has now received the Statement of Defence from the Province of British Columbia (the “Province of B.C.”) in response to our action in the Supreme Court of British Columbia, which alleged that the Province of B.C. has prevented the Company from exploring for, developing, or producing uranium or thorium from the Cup Lake/Donen uranium property and that the Province of B.C. has expropriated the Company’s interest in the property.
The Statement of Defence filed by the Province of B.C. agrees that as the Cup Lake/Donen Property claims were registered prior to the Uranium and Thorium Reserve coming into effect, the Regulation does not apply to the Cup Lake/Donen Property and “does not affect the rights, titles or interests of the Plaintiffs (IMT) in any way. This was the same public response given by the former Minister of State for Mining –Kevin Krueger. The Statement of Defence merely parrots that which the Province filed in response to the Boss Power action in November 2008 but fails to admit to the following action taken by the Province of B.C. since that time:
On March 12th, 2009 the Government of the Province of B.C. issued an Order in Council #208 prohibiting the Chief Mines Inspector from issuing work permits in respect of uranium and thorium. “This is as far as the Province of B.C. needs to go”, says former B.C. Mining Minister Gordon Hogg in respect to banning and developing of uranium and thorium projects and matching mining and exploration regulations with the province’s no- nuclear policy.
The Province’s position that the Uranium and Thorium Reserve does not apply to our project is in direct conflict with the newly enacted Order in Council. IMT believes that the Province of B.C. has, by issuing this Order in Council, aggravated the damages to the Company by furthering the expropriation of the Cup Lake/Donen deposit.
In a recent Business In Vancouver – August 11-17/09 article IMT President Gary Musil states he “believes the Province of B.C.’s ban is connected in part with pressure from people who have a vested interest in hydro-power.” “In B.C., we have a rich province for hydro-power. To some people, (uranium mining) would be in conflict with that.” But Randy Hawes, B.C.’s Minister of State of Mining (3rd Minister in less than two years), said that’s not true. “I would not be of the opinion in any way, shape or form that the hydro-electrical community had anything at all to do with (the government’s decision to ban uranium mining).”
“Is B.C. ‘Open for Business’ or Not”, questions Gary Musil?
The statement of claim seeks compensation for the property expropriated including:
i. damages for loss of value of the interests taken;
ii. damages for disturbance of IMT’s business in relation to the expropriated
claims;
iii. damages for expenses incurred in relation to the Claims and thrown away
as the result of the expropriation; and
iv. other costs
The Company is working with its legal advisors in deciding what further action it may take.
The Cup Lake/Donen Uranium deposits were originally staked for Nissho-Iwai Canada Ltd. in 1971 and explored by Power Reactor and Nuclear Fuel Development Corporation of Japan (“PNC”). As reported in B.C. Government-Minfiles, work prior to 1980 consisted of a total of 5,486 meters of diamond drilling in 76 holes, logging, geological mapping and testing. Drill holes were used by PNC to estimate a historic resource reported (Assessment Report #8105) as 2.25 million tons grading 0.0373% U308 (approx. 1.68 million lbs.) The historical resource estimate cited above predates and therefore does not conform to the more stringent reporting requirements of National Instrument 43-101 and should not be relied upon. IMT has not done sufficient exploration work to classify the historic estimate as a current mineral reserve or resource. A success contingent staged evaluation program for further testing of the uranium mineralization was planned prior to the Province of B.C. ban.
The Cup Lake/Donen uranium deposit occurs within a northwest trending paleochannel. The claims adjoin to the northwest the claims hosting the Blizzard uranium deposit owned by Boss Power Corp. (“TSX.V –BPU”). Boss Power has also filed a statement of claim against the Province of B.C. and the action in the Supreme Court of B.C. continues.
IMT remains committed to the exploration for uranium as an alternative energy source to promote the reduction of greenhouse gases. IMT has been advancing its uranium projects in two uranium mining friendly Provinces of Saskatchewan and Ontario.
ON BEHALF OF THE BOARD OF DIRECTORS
“Gary Musil”
Gary Musil, President
CEO/Director
International Montoro Resources Inc.
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