Mining Prospects Trends and Developments in Mining Law in Canada and Internationally

Tag Archives: litigation

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

Mineral Royalties: When Do They “Run With the Land”?

Posted in Mining

The challenging commodity price environment will likely bring renewed focus on the rights and obligations that will be impacted if insolvency overtakes exploration and production companies. The British Columbia Supreme Court’s recent decision in Re: Walter Energy Canada Holdings, Inc. is a case in point. The case dealt squarely with the question of whether a mineral royalty “runs with the land” – a question that takes on significantly greater importance in the insolvency context.… Continue Reading

Millions Invested and Nothing to Show for It – That’s Just the Nature of Option Agreements

Posted in Mining

Overview

The Ontario Court of Appeal in 798839 Ontario Limited v. Platt, 2016 ONCA 488, recently affirmed a trial judge’s decision that saw an optionholder that invested millions into the development of mining claims be left with zero interest in those claims.  The optionholder failed to meet all of the necessary preconditions to be able to exercise its option, and was left without any interest to show for it.  What seems like an unjust outcome is just the nature of options, according to the Court of Appeal.… Continue Reading