SEC Complaint Slams AMEX MGN
Press Release, April 14, 2013
Frank Wall, Engineering Specialist for Libby Creek Ventures (LCV) announced today filing of a complaint with the U.S. Securities and Exchange Commission. The complaint involves a court decision of a lawsuit filed in Lincoln County 19th District Court in Montana, Case DV 07-248, that was filed September 26, 2007 involving the Montanore mining project.MMI in (allegedly) attempting to steal LCV claims, opening the Libby Creek Adit and pumping water for no reason for 5 years, and then making false statements to authorities has cost Wall and associates estimated $60+ million since 2007.
A ruling was issued by Judge Wheelis against Plaintiffs, Mines Management, Inc. (MMI) on March 12, 2013 providing injunctive relief against MMI, et al. trespassing on LCV mineral mining claims (MMC), that LCV had senior claims and the $65 million - 14,400 foot Adit (tunnel) was in fact the property of LCV (developed in 1989-1991 by Noranda Minerals and Montana Reserves at a cost of ~$150 million). Noranda abandoned Montanore in 2002 and reverted the adit to LCV.
The confrontation between LCV and MMI started in 2005 when MMI over-staked LCV claims and sought U.S. Forest Service and Montana DEQ permits for mining without LCV permission.
The controversy surrounds MMI Chairman and CEO Glenn Dobbs, his CFO, and MMI attorneys, making false, defamatory and misleading statements to authorities against Wall, LCV and the other eight defendants in the lawsuit. In addition to the complaint filed with the SEC, Wall recently served the legal parties in DV 07-248 under cause # DV 10-81 that was filed with the Lincoln County Court on March 30, 2010.
WALL alleges MMI made False or misleading statements about a company (including false or misleading SEC reports and/or financial statements), and other fraudulent conduct. A person who is found to have knowingly and willfully submitted false, fictitious, and/or fraudulent statements to the SEC may be fined up to $10,000 and/or imprisoned up to five years. -- 18 USC 1001; 17 CFR 11.6(b).”
Montana Reserves Co. (MRC) Frank Duval (& Harry Magnuson, deceased) filed a lawsuit against Plaintiffs in DV 07-248 and their predecessor Noranda Minerals Corporation shortly after the Montanore project was abandoned and reverted to LCV. This lawsuit was settled out of court weeks before MMI sued LCV, Wall and 8 others. MRC vs. MMI was “faithfully” reported in MMI SEC quarterly reports including settlement, but NOT the MMI cause/complaint against LCV (same period).
EPA Rates the Montanore Mine Proposal Environmentally Objectionable
Written responses from the Environmental Protection Agency and the U.S. Fish and Wildlife Service (FWS) to the latest Supplemental Environmental Impact Statement (SDEIS) on the Montanore mine proposal suggest that the project cannot be permitted as currently proposed.
Montanore Minerals Corporation in Lincoln County has been awaiting governmental approval to begin preliminary assessment of its silver and copper deposit within the Kootenai National Forest (KNF) and Cabinet Mountains Wilderness (CMW) since 2003.
The EPA recently rated the SDEIS as “EO-2,” meaning the Agency has environmental objections to the proposal, and the document provides insufficient information for EPA to fully assess environmental impacts to aquatic life, natural water resources, wetlands, and stream flow.
In December 20, 2011 letters to Paul Bradford of KNF and Richard Opper of Montana DEQ, who are heading the permitting process on the local and state levels, Carol L. Campbell of EPA’s regional office highlights significant problems with the Montanore SDEIS:
We are concerned about predicted alteration of water quality and its consequent impacts on aquatic life and wetlands. The SDEIS also projects adverse impacts to surface water quality and groundwater quality about which we are concerned.
EPA calls for more information on expected groundwater drawdown due to Montanore’ s super-consumption of area water resources, in particular regarding the seasonal draining of Rock Lake in the CMW. Campbell writes that while “it is likely that [aquatic] habitat will be at least seasonally lost,” the document “does not identify potential mitigation for these impacts.”
Stewart calls the East Fork Bull River “the single-most important bull trout spawning and rearing stream in the Lower Clark Fork bull trout core area,” and says that Montanore’s currently proposed dewatering activities are not acceptable.
Campbell also questions the plan’s proposed flow reductions in surface water that are “inconsistent with the State of Montana’s Water Quality Act nondegradation provisions,” and the pollution projections for pristine area streams that include toxic levels of manganese, antimony, nitrate, metals and dissolved solids. The SDEIS does not detail any proposed mitigation measures for this pollution.
EPA’s Executive Order requires that any plan to degrade and destroy federal wetlands must first explore ways to avoid or minimize the destruction before resorting to land mitigation to replace such areas. The SDEIS does not comply, as Campbell and EPA comment:
The EPA does not agree that all measures have been incorporated … that would reduce the direct and indirect impacts to wetlands.
If the Montanore proposal is to meet federal regulations, it must seriously consider plans to avoid or reduce impacts on KNF wetlands.
In written comments responding to the SDEIS, Regional Environmental Officer Robert F. Stewart of U.S. Fish and Wildlife Services focuses on the impacts of the Montanore proposal on “Endangered Species Act (ESA) listed species, including grizzly bears, Canada lynx, and bull trout.”
FWS believes the SDEIS inadequately addresses the effects of the Montanore proposal on threatened bull trout that spawn in the affected Bull River. Stewart calls the East Fork Bull River “the single-most important bull trout spawning and rearing stream in the Lower Clark Fork bull trout core area,” and says that Montanore’s currently proposed dewatering activities are not acceptable.