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, 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