Platinum exploration company Platinex Inc. has given up its claim to a disputed platinum project on First Nations land in northern Ontario in exchange for $5 million.

The company says it has an agreement with the Ontario government to resolve its litigation against the province and the Kitchenuhmaykoosib Inninuwug, or KI, First Nation over its Big Trout Lake exploration property.

Platinex was suing Ontario and the KI First Nation because KI was allegedly preventing the company from gaining access to its claims at Big Trout Lake.

The company claimed the province failed in its duty to consult with KI and also failed to warn Platinex that it wouldn’t enforce the land claims.

Platinex was seeking more than $70 million from the province.

However, the company said yesterday it will drop the lawsuit and surrender all its mining claims and leases at Big Trout Lake. In return, Platinex will receive $5 million and a 2.5 per cent net smelter royalty interest in connection with any future development on the property.

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