Ann: Axiom Mining Litigation and Capital Raising , page-20

re: Ann: Axiom Mining Litigation and Capital ... And and and this part is the best part, i liked it a lot.

SMM’s
Claims
The
proceedings
specifically relate to:
?
the cancellation of an award of an international tender to SMM in relation to land in
San Jorge (part of which is Bungusule Land), Jejevo and Takata which included the
Kolosori Land (
“
Tender Areas
”
);
?
the letter of intent whereby t
he Minister of Mines Energy and Rural Electrification
agreed to grant a prospecting licence to SMM subject to SMM obtaining surface
access agreements from the relevant landowners (
“
LOI
”
); and
?
the registration of the Kolosori Land by the
seventh
defendants
and the granting of a
registered lease by the
seventh
defendants to Axiom.
In the proceedings, the claimants essentially seek
following
orders:
?
quashing the Mineral Board’s decision to cancel SMM’s LOI issued by the Minister
pursuant to international tende
r which was awarded to SMM in respect of the
Takata, San Jorge and Jejevo areas
in
Isabel
province
; and
?
setting aside the registration of the Kolosori Land and Axiom’s registered lease over
the Kolosori Land.
Axiom’s Defence
Axiom is defending the proceedi
ngs, broadly on the following bases:
Mining Issues
?
The international tender notice was invalid including for the reason that the Minister
did not at any time specify any area as a proposed area for prospecting by notice in
the Gazette or otherwise as required by clause 3B(1) of the
Mines and Minerals
Regul
ations
and the whole tender process has miscarried;
?
The Director of Mines was obliged to reject SMM’s tender under the "land banking"
rule in section 20(5)(c) the
Mines and Minerals Act (SI)
(
“
MM Act
”
).
Axiom asserts
this rule applies because SMM held
thre
e
or more prospecting licences at the time
;
?
Upon it being granted the award of the international tender, SMM was required to
lodge an appli
cation for prospecting licence.
SMM failed to do this and as a
consequence, the LOI granted to SMM lapsed;
?
The Mini
ster was entitled to cancel the award of the international tender to SMM
and withdraw the LOI from SMM; and
?
Axiom’s registered lease and prospecting licence are valid.
3
Land Issues
?
The
Land and Titles Act (SI)
(
“
LT Act
”
) adopts a Torrens system, by which ti
tle to land
is guaranteed through a process of registration;
?
Axiom, in obtaining a registered lease, dealt with the registered owners of the
Kolosori Land being the
seventh
defendants and was not required to go behind the
register;
?
Axiom
was also confident
that
it dealt with the
true representative
s of the
landowners;
In the event that SMM’s claims fail, BML’s cross claim essentially seeks priority over SMM
and Axiom in respect of its application for a mineral right over certain areas
in Isabel
province
inc
luding the Kolosori Lan