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The use of cyanide in gold recovery was made illegal in the State of Montana in 1998 with the passage of the anti-cyanide ballot initiative I-137 and on November 2, 2004, re-enforced with the defeat of the I-147 ballot initiative, which was designed to repeal I-137. This was a first of its kind legislation in the U.S. On June 8, 2005, the State of Montana, by order of the Montana Supreme Court, also cancelled the State mining lease, which encompasses the core of the McDonald orebody and a portion of the Keep Cool deposit, effectively taking the property. Private leases associate with the remainder of the two orebodies have since terminated. The Seven-Up Pete deposit, which is located primarily on patented mining claims, was not impacted by these events.
The Seven-Up Pete Venture combined with private plaintiffs has filed suit against the State of Montana for taking the value of its properties. Below is a timeline of material events in this case:
July 2008
Mountain States Legal Foundation ("MSLF") files a petition for writ of certiorari on behalf of Atna's wholly owned subsidiary, Seven-Up Pete Venture and other property owners, with the United States Supreme Court in the case Seven-Up Pete Venture, et al. v Brian Schweitzer, et al. MSLF is a nonprofit, public interest law firm dedicated to individual liberty, the right to own and use property, limited and ethical government and the free enterprise system.
January 2007
Atna's wholly owned subsidiary, Canyon Resources entered into an Asset Exchange Agreement with various subsidiaries of Newmont Mining Corporation ("Newmont") to acquire the 3% net smelter return ("NSR") royalty held by Newmont on Canyon's CR Briggs Mine in Inyo County, California. In addition, Canyon has entered into a Mineral Lease, Sublease and Agreement with Newmont to acquire an option on the Adelaide Gold Project in Humboldt County, Nevada and the Tuscarora Gold Project in Elko County, Nevada. In exchange, Newmont will receive from Canyon certain mineral rights, surface leases, and facilities near Lincoln, Montana with associated intellectual property and Newmont will assume all associated reclamation liability. Canyon will retain a 3% NSR royalty on mineral rights provided by Canyon in this transaction, which may be reduced if the net of Newmont's royalty and that of underlying landholders exceeds 5%. In addition, Canyon will retain ownership of its Seven-Up Pete Gold Project near Lincoln and will continue to pursue its takings suit against the State of Montana in relation to its previous holdings in the McDonald Project.
May 2006
A Notice of Appeal to the U.S. Court of Appeals for the Ninth Circuit was filed. Briefs for this case will be submitted in June 2006. We do not expect oral arguments until early 2007.
April 2006
The United States District Court for the District of Montana, Helena Division, dismisses the complaint related to its federal takings claim in the case of Seven-Up Pete Venture, et al. v The State of Montana. This dismissal was based on technical grounds without deciding on the merits of the case
February 2006
United States Supreme Court responds, denying grant of certiorari in the case of Seven Up Pete Venture, et al. v The State of Montana.
November 2005
A Petition for Writ of Certiorari is filed with the United States Supreme Court to appeal the Montana Supreme Courts decision
June 2005
Montana Supreme Court upheld the I-137 initiative and denies that a "taking" occurred. The Montana Supreme Court also affirmed cancellation of the Venture's State mining leases.
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