Supreme Court to hear appeal by Lac

The legal battle surrounding ownership of the Page Williams mine in the Hemlo gold camp in northern Ontario has moved on to the next — and final — stage. The Supreme Court of Canada has given Lac Minerals permission to appeal the decision of the Ontario Court of Appeal awarding the mine to International Corona Resources. Three judges granted Lac leave to appeal on Dec 17; Lac filed its notice of appeal Dec 18.

At stake is mining property located close to the north shore of Lake Superior, along the Trans- Canada highway, which by 1991 could be producing 500,000 oz gold per year.

Lac’s appeal could be heard within the next year. Mike Larmour, assistant clerk of process in the Supreme Court’s registry office in Ottawa, told The Northern Miner there are two courses of action: the trial could be placed on the list of hearings, which currently would set the trial date before the fall of 1988, or the Supreme Court could be asked for an expedited hearing which, if granted, would move the trial date forward. Original decision

The Page Williams mine, brought into production by Lac, was awarded to Corona in March, 1986, by a Supreme Court of Ontario judge, who also ordered Corona to pay $154 million to Lac. The judge ruled Lac had breached a fiduciary relationship and used confidential information. The Ontario Court of Appeal in October concurred — the four judges were unanimous — with the original decision.

Following the granting of leave to appeal, Corona announced it is seeking leave to launch a cross-appeal in the Supreme Court of Canada regarding its claim it should not have to pay Lac the $154 million on the transfer of the mine. This claim was denied by the Ontario Court of Appeal in October.

Since the original ruling, the Page Williams mine has been operated by Lac in accordance with its 5-year mining plan under the direction of a management committee composed of one Lac nominee, one Corona nominee and a third party agreed upon by both Lac and Corona.

Corona currently has a 50% interest in the producing David Bell gold mine, adjacent to the Page Williams mine, which is operated by Teck Corp. Under an agreement between the two companies, Corona and Teck will each have a 50% interest in the Page Williams mine should the Supreme Court rule in favor of Corona.