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

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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