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Valuation in mining cases: Lessons from the Re Nord Gold SE dissent proceeding

Posted in M&A, Mining

In M&A transactions, dissenting shareholders sometimes disagree with the fair market value (FMV) offered for their shares. Absent settlement, a court must determine the FMV of the company’s shares for dissenting shareholders. In the mining context, this task may be complicated by the prospect of valuing exploration lands unsupported by a “NI 43-101” (Standards of Disclosure for Mineral Projects) report or data demonstrating economic mineralization.

In Re Nord Gold SE,[1] the Ontario Superior Court decided a valuation case in the junior mining context. Shareholders of Northquest Ltd. representing 0.86% of its common shares dissented from a … Continue Reading

Chile Releases New Preliminary Study on its Cobalt Potential: Gearing Up to Feed the Electric Car Industry

Posted in Mining

On 12 December, 2017, Chile’s Corporation for the Promotion of Production (“CORFO”), together with the National Service of Geology and Mining  (“Sernageomin”) and the University of Chile, released an interesting preliminary report about the potential to explore for and develop cobalt deposits in Chile: “Cobalt Mineral Resources in Chile – Exploration & Mining Potential” (the “Report”).[1] The Report identifies the districts of San Juan & Carrizalillo Alto (Atacama Region) and Tambillos (Coquimbo Region) as potential targets for cobalt extraction, together with copper and gold. These minerals are generally found together in small to … Continue Reading

Lessons from an Historic Mining IPO

Posted in Mining

The recently completed initial public offering by Nexa Resources S.A. (formerly, Votorantim Metais) on the Toronto Stock Exchange (the TSX) and the New York Stock Exchange has received considerable attention from capital markets participants and the financial press for its size (US$570 million, including the exercise of the over-allotment option) and for the large and impressive underwriting syndicate. Nexa’s IPO was the largest mining IPO on the TSX of a Latin American company, it was Canada’s 3rd largest mining IPO ever and the largest mining IPO in Canada over the last decade!  The IPO is also noteworthy for … Continue Reading

Ontario Court of Appeal Overturns Security for Costs Order in Yaiguaje v. Chevron Corporation

Posted in Awards and Recognitions, Litigation, Mining

Yaiguaje v. Chevron Corporation, 2017 ONCA 827

Overview

The Ontario Court of Appeal has overturned the decision of the motion judge who ordered that the foreign-resident plaintiffs post approximately $1M in security for costs in order to continue their proceeding and appeal against Chevron Corporation (“Chevron”) and Chevron Canada.

This is a significant reversal, as the motion’s judge decision (analyzed here) called into question whether the plaintiffs would be in a position to proceed with their appeal of Justice Hainey’s decision dismissing the proceeding against Chevron Canada on the basis that its assets are not available to satisfy … Continue Reading