This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Centerra Gold Inc. has lost a court case over a 40-year-old royalty agreement on the Mount Milligan mine, with the Court of Appeal for British Columbia ordering the company to pay additional royalties to the property's vendor. The vendor complained that Centerra had been underpaying a 2-per-cent net smelter return since 2016. The dollar amount owing at the time of the lawsuit amounted to $7.1-million, according to the vendor.

The loss for Centerra is contained in a decision that the Court of Appeal released on Tuesday, Jan. 13. The ruling, which follows a two-day hearing in October, 2025, overturns an earlier judgment in the case. Three appeal judges have unanimously ruled in favour of HRS Resources Corp., a private entity owned by the children of prospector Richard Haslinger, with that entity holding the Mount Milligan royalty.

Tuesday's judgment is heavily rooted in legalese, but the underlying dispute is relatively straighforward. It goes back to July 13, 1986, when Mr. Haslinger sold the claims that became the Mount Milligan mine. While the ground was nowhere close to being a mine, the property agreement (as is typical) included a term that provided Mr. Haslinger with a royalty, payable in the event that somebody built a producing mine on the site.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS