Geddes seeks down payment’ for expropriated claims

During the past 12 months, Geddes Resources (TSE) has made more than 80 attempts to persuade the British Columbia government to begin the process of compensation for its expropriated Windy Craggy copper property in the northwest.

Last June, Premier Michael Harcourt announced plans to create a park in the Tatshenshini-Alsek basin. The government then expropriated claims held by more than 20 companies or individals, the most advanced being Windy Craggy. At that time, government officials said holders of claims in the affected area would be entitled to “fair compensation” as quickly as possible. Yet, at Geddes’ annual meeting, President John Smrke told shareholders that the government has done little to communicate with the company with regard to payment.

“In fact, one is left with the impression of a strategy of avoidance on the part of government,” Smrke said. “It is as though, now that the decision is made, they lack the wherewithal or motivation to complete the process and honor the fair compensation commitments that they boasted about a year ago.” However, Geddes’ more recent efforts finally brought some government action. One day before its annual meeting, the company was informed that the attorney general’s office was starting a process of gathering information from all mineral claim-holders within the park. Geddes and other claim-holders will have 60 days to supply the requested information.

Smrke called the government request “a small beginning,” pointing out that most of the information relating to its claims has already been submitted to government.

“We still don’t have a process laid out and we don’t know who we will be negotiating with,” said Royal Oak President Margaret (Peggy) Witte. Royal Oak became Geddes’ largest shareholder last May when it bought Northgate Explorations’ 39.1% interest.

Witte said Geddes has still not received a response to its request for a “down payment” of about $5 million on the ultimate compensation, so as to continue business and find new mineral opportunities.

Geddes intends to pursue compensation based on a range of values between $110 million and $620 million (as stated in the Commission on Resources and Environment report of January, 1993).