The applicant, Tacora Resources Inc., brought a motion seeking declarations regarding the calculation of quarterly MFC Royalties payable under the Scully Mine Lease, specifically asserting that the arm's length Net Revenue calculation method (clause (j)(i)) applies to its sales to Cargill International Trading Pte Ltd. The respondent, 1128349 BC Ltd. (MFC), contended that Tacora and Cargill were not at arm's length, requiring the non-arm's length calculation method (clause (j)(ii)), and claimed significant underpayments.
The court granted Tacora's request, finding that the Cargill Offtake Agreement was an arm's length bona fide contract of sale, and therefore, the clause (j)(i) method for calculating Net Revenues was applicable.
The court dismissed 112 Ltd.'s claims for additional royalties.
