Skeena Announces Positive Judgment by the British Columbia Court of Appeal Regarding the Albino Lake Storage Facility
Skeena Resources (TSX:SKE, NYSE:SKE) announced a victory in the British Columbia Court of Appeal regarding the Eskay Creek Mine waste rock and tailings in the Albino Lake Storage Facility. The Court overturned previous decisions by the Chief Gold Commissioner and the British Columbia Supreme Court, which had ruled in favor of Richard Mill and Orogenic Gold Corp. The Court of Appeal found that Skeena had not relinquished its rights to the Eskay Creek Material and that the original ruling was incorrect. The case is now referred back to the current Chief Gold Commissioner for reconsideration. The decision is seen as a significant win for Skeena, although the Eskay Creek Material is not part of the company's current Resource or Reserve Statements.
- Court of Appeal ruling in favor of Skeena, affirming ownership of Eskay Creek Material.
- Reversal of prior decisions by Chief Gold Commissioner and British Columbia Supreme Court.
- Matter referred back to the Chief Gold Commissioner, causing potential delays.
Insights
The recent ruling by the British Columbia Court of Appeal in favor of Skeena Resources Limited is a significant legal victory. The court's decision to overturn the previous rulings by the Chief Gold Commissioner and the British Columbia Supreme Court essentially reaffirms Skeena's ownership rights over the Eskay Creek Material stored in the Albino Lake Storage Facility. This development is important because it underscores the importance of clear legal interpretations in mineral rights disputes. For investors, this ruling mitigates potential legal uncertainties and liabilities that could have affected Skeena's operational and financial standing. It's important to note that while the matter is being referred back to the current Chief Gold Commissioner for rehearing, the favorable ruling provides Skeena with a stronger legal foothold.
In the long term, resolving this legal dispute in Skeena's favor could open the door for potential economic benefits if the Eskay Creek Material gains value or relevance. However, in the short term, investors should be aware that the material hasn't been included in the company's resource or reserve statements or any feasibility studies, which means its immediate financial impact may be limited.
From a financial perspective, the positive judgment by the British Columbia Court of Appeal improves Skeena Resources Limited's legal standing and potentially enhances its asset base. Legal uncertainties often translate to financial risks and this ruling reduces such risks considerably. Although the Eskay Creek Material is not currently part of Skeena's resource or reserve statements or its definitive feasibility study, the confirmation of ownership rights could provide future financial benefits if market conditions or technological advancements render the material economically viable.
Moreover, the ruling could influence investor sentiment positively, potentially leading to a favorable impact on Skeena's stock price in the short term. However, it's essential for investors to remain cautious as the matter is still subject to further legal proceedings. In the long run, the final resolution of this dispute could contribute positively to Skeena's financial outlook, but immediate tangible financial benefits may not be realized until the material's economic value is established.
With this ruling, Skeena Resources gains a clearer path forward in its ongoing legal battle over the Eskay Creek Material. For the market, legal clarity often translates into reduced perceptions of risk, which can influence investor confidence and market performance. This decision could potentially enhance Skeena's market positioning by affirming its rights over valuable waste materials, even if they are not immediately reflected in current resource or reserve assessments.
However, investors should be vigilant and consider the broader market and industry context. While this ruling is a positive step, the actual economic impact will depend on future developments, including the rehearing by the Chief Gold Commissioner and any subsequent utilization of the Eskay Creek Material. For now, the ruling serves as a positive signal, potentially stabilizing or slightly improving Skeena's market valuation in the near term.
VANCOUVER, BC / ACCESSWIRE / July 5, 2024 / Skeena Resources Limited (TSX:SKE)(NYSE:SKE) ("Skeena" or the "Company") is pleased to announce that the British Columbia Court of Appeal overturned the decision of the Chief Gold Commissioner and Supreme Court of British Columbia in the matter, Skeena Resources Limited v Richard Mill, the Chief Gold Commissioner of British Columbia and Orogenic Gold Corp.
The former Chief Gold Commissioner had determined that Richard Mill was the owner of the waste rock and tailings from the Eskay Creek Mine that were placed in the Albino Lake Storage Facility (the "Eskay Creek Material"). Justice Iyer of the British Columbia Supreme Court upheld the decision of the Chief Gold Commissioner on November 22, 2022.
The Court of Appeal concluded that on the record before it, Skeena did not "relinquish" its rights to the Eskay Creek Material and that the former Chief Gold Commissioner was "clearly and palpably wrong to hold otherwise". Mr. Mill's asserted entitlement was based on the Province's grant of a mineral claim to him in 2017. The Court, however, found that the Province cannot be said to have granted ownership rights of the Eskay Creek Material to Mr. Mill when it granted him the mineral claim because the Province itself did not hold the rights to the material at the time.
With the decisions of the former Chief Gold Commissioner and the Supreme Court now overturned, the matter will be referred back to the current Chief Gold Commissioner for rehearing and reconsideration in light of the Court of Appeal's decision.
Skeena Resources is pleased with the decision of the Court of Appeal and looks forward to the opportunity to have the Chief Gold Commissioner decide Skeena's contention that it owns the Eskay Creek Material. Skeena Resources will provide further information on this matter as it becomes available.
Walter Coles, Executive Chairman of Skeena commented: "We are gratified by the ruling from the BC Court of Appeal. This decision is a strong one and affirms our belief that the former Chief Gold Commissioner was in error when he decided that Skeena gave up its ownership of the waste material from the Eskay Creek mine once it was deposited into the Albino Lake tailings storage facility."
The Eskay Creek Material contained in the Albino Lake Storage Facility is not part of the Company's Resource or Reserve Statements for Eskay Creek nor has it been included in any studies, including the November 2023 Definitive Feasibility Study for the Eskay Creek Project.
About Skeena
Skeena is a fully financed leading gold developer that is focused on advancing the Eskay Creek Gold-Silver Project - a past producing mine located in the renowned Golden Triangle in British Columbia, Canada. Eskay Creek represents one of the highest-grade and lowest cost open-pit precious metals mines in the world, with substantial silver by-product production that surpasses many primary silver mines. Skeena is committed to sustainable mining practices and maximizing the potential of its mineral resources. In partnership with the Tahltan First Nation, Skeena strives to foster positive relationships with Indigenous communities while delivering long-term value and sustainable growth for its stakeholders.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles | Randy Reichert |
Executive Chairman | President & CEO |
Contact Information
Investor Inquiries: info@skeenaresources.com
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
Qualified Persons
In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo., Senior Vice President, Exploration & Resource Development, is the Qualified Person for the Company and has prepared, validated, and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting the exploration activities on its projects.
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this press release constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively, "forward-looking statements"). These statements relate to future events or our future performance. The use of words such as "anticipates", "believes", "proposes", "contemplates", "generates", "targets", "is projected", "is planned", "considers", "estimates", "expects", "is expected", "potential" and similar expressions, or statements that certain actions, events or results "may", "might", "will", "could", or "would" be taken, achieved, or occur, may identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-looking statements contained herein include, but are not limited to, statements regarding the rehearing and reconsideration of the claim regarding the Eskay Creek Material, the results of the Definitive Feasibility Study, processing capacity of the mine, anticipated mine life, probable reserves, estimated project capital and operating costs, sustaining costs, results of test work and studies, planned environmental assessments, the future price of metals, metal concentrate, and future exploration and development. Such forward-looking statements are based on material factors and/or assumptions which include, but are not limited to, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company's MD&A for the year ended December 31, 2023, its most recently filed interim MD&A, and the Company's Annual Information Form ("AIF") dated March 28, 2024. Such forward-looking statements represent the Company's management expectations, estimates and projections regarding future events or circumstances on the date the statements are made, and are necessarily based on several estimates and assumptions that, while considered reasonable by the Company as of the date hereof, are not guarantees of future performance. Actual events and results may differ materially from those described herein, and are subject to significant operational, business, economic, and regulatory risks and uncertainties. The risks and uncertainties that may affect the forward-looking statements in this news release include, among others: the inherent risks involved in exploration and development of mineral properties, including permitting and other government approvals; changes in economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other factors, including accidents, equipment breakdown, bad weather and other project execution delays, many of which are beyond the control of the Company; environmental risks and unanticipated reclamation expenses; and other risk factors identified in the Company's MD&A for the year ended December 31, 2023, its most recently filed interim MD&A, the AIF dated March 28, 2024, the Company's short form base shelf prospectus dated January 31, 2023, and in the Company's other periodic filings with securities and regulatory authorities in Canada and the United States that are available on SEDAR+ at www.sedarplus.ca or on EDGAR at www.sec.gov.
Readers should not place undue reliance on such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and the Company does not undertake any obligations to update and/or revise any forward-looking statements except as required by applicable securities laws.
SOURCE: Skeena Resources Limited
View the original press release on accesswire.com
FAQ
What did the British Columbia Court of Appeal decide regarding Skeena's Albino Lake Storage Facility?
How does the Court of Appeal's ruling impact Skeena Resources (SKE)?
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Was the Eskay Creek Material included in Skeena's Resource or Reserve Statements?
