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Sumitomo Challenge Solomon Islands Government and Axiom KB in High Court
Axiom KB Limited (?Axiom KB?), 80% owned Solomon Island subsidiary of Axiom Mining Limited (?Axiom?) has been joined as a defendant in proceedings commenced under a certificate of urgency in the High Court of Solomon Islands on Thursday 21 July 2011 by SMM Solomon Limited, a subsidiary of Sumitomo of Japan (?SMM?).
The proceedings have been stood over by the court until 18 August 2011. In the intervening period Axiom KB has given an undertaking to restrict its exploration activities on Isabel Island under its Prospecting Licence.
The Board of Directors of Axiom and Axiom KB are not surprised with the proceedings given the significance of Axiom KB?s Prospecting Licence that it has been operating under since being granted on 15 April 2011. Over the many years, SMM has been operating in the Solomon Islands it has never been capable of converting a Letter Of Intent (LOI) it has received over the land now being challenged, into a Prospecting Licence. This fact is primarily due to the majority of the customary landowners enforcing their constitutional rights of final veto and refusing SMM access to their land.
The proceedings have been commenced by the Claimants against a number of parties which include the Attorney General (representing the Minerals Board (?Board?) the Minister for Mines, Energy and Rural Electrification (?Minister?), the Commissioner of Lands, the Registrar of Titles, Axiom KB, the Kolosori Trustee landowners and another company unrelated to Axiom KB.
SMM and the other Claimants are seeking various orders relating to the Isabel Nickel Deposit International Tender process including decisions or determinations leading to the cancellation of the Letter of Intent to grant a Prospecting Licence to SMM by the Board and the Minister back in January this year. SMM is also seeking rectification of various alleged land title issues by the Registrar of Titles, declarations in respect of the validity of the Axiom KB Prospecting Licence and injunctive relief restraining Axiom KB Limited from pursuing exploration activities under its subsisting Prospecting Licence.
Given that the claims made by SMM include seeking orders against the Solomon Island Government and involve many pages of material it will take the Company several days to determine the details of the case Axiom KB has to answer, if any.
The Board of Axiom and Axiom KB advises that it intends to vigorously defend the proceedings to protect its Prospecting Licence and confirms that they are confident of a successful outcome from the High Court when the facts have been properly presented. On the face of it, the Claim contains factual inconsistencies that will be rectified when Axiom KB presents its case to the High Court.