Yukon Zinc, owner of the Wolverine Mine in the Yukon, commenced
restructuring proceedings in March 2015 under the
Companies' Creditors Arrangement Act (CCAA). In
addition to the jurisdictional dispute discussed above under the
heading "Conflicts and Jurisdiction," (page 33) an issue
arose about entitlement to over 14,000 tonnes of zinc concentrate,
worth US$8 million.
The dispute was between Transamine Trading S.A., which claimed
to have purchased the zinc concentrate from the mine, and Procon
Mining and Tunnelling Ltd., which had supplied mining services,
equipment and materials to Yukon Zinc at the mine. Procon had filed
a miner's lien under the Yukon Miners Lien Act in
January 2015, but Transamine said that title to the concentrate had
already been transferred to it.
The British Columbia Supreme Court found in favour of
Transamine, ordering that the concentrate was held for its benefit
and was not encumbered by Procon's lien. In determining the
timing of Transamine's interest, the Court considered that the
purchase contracts expressly stipulated that title transferred on
payment, which in this case occurred before the lien was
registered. Further, Transamine had control over the concentrate in
transit and in amounts segregated and intact at the mine site (even
if Yukon Zinc retained some of the risk) before the lien was
registered because the terms of the contracts and the holding
certificates made it clear that, upon ascertainment of the
concentrate it was at the "irrevocable and unconditional
disposal" of Transamine. The Court also concluded that Procon
had released its interests created by two previous liens for the
very purpose of allowing Yukon Zinc to enter into the purchase
contracts with Transamine.
In a subsequent decision, indexed as 2015 BCSC 1991, the Court
denied Transamine's application for special costs from Procon,
finding that Procon had defended the application in good faith and
that ordinary party and party costs were appropriate.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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