Ontario Land Tribunal
ISSUE DATE: July 30, 2024
CASE NO(S).: OLT-24-000619
PROCEEDING COMMENCED UNDER section 64 of the Mining Act, R.S.O. 1990, c. M. 14, as amended
Applicant: Precambrian Ventures Ltd.
Subject: Request of a party to a proceeding pending before the Ontario Superior Court of Justice for an order confirming the proceeding is pending and requiring the Provincial Mining Recorder to make a note of the pending proceeding on the applicable mining claim abstracts
Mining Claims: See Schedule “A” attached and forming part of this Order
Mining Division: Sudbury
OLT Case No.: OLT-24-000619
OLT Lead Case No.: OLT-24-000619
OLT Case Name: Precambrian Ventures Ltd. v. 2801773 Ontario Inc.
Heard: In writing
| Parties | Counsel |
|---|---|
| Precambrian Ventures Ltd. | James C. Simmons |
DECISION DELIVERED BY S. BRAUN AND ORDER OF THE TRIBUNAL
Link to the Order
BACKGROUND TO THE APPLICATION
1This Decision and Order deals with a request received from Precambrian Ventures Ltd. (“Precambrian”) on June 11, 2024 for an Order of the Ontario Land Tribunal (“Tribunal”) pursuant to s. 64(2.2) of the Mining Act, R.S.O. 1990, c. M.14, as amended (“Act”) confirming that a proceeding is pending before the Ontario Superior Court of Justice (“Court”) and requiring the Provincial Mining Recorder to make a note of the pending proceeding on 39 mining claim abstracts (“mining claims”).
2Precambrian’s request for an Order of pending proceedings is supported by the following:
the Application to the Tribunal (Appeal Form) requesting the Order pursuant to s. 64(2.2) (“Application”);
the issued Statement of Claim in Court File No. CV-24-00012087-0000 naming 2801773 Ontario Inc. as the Defendant;
the purchase agreement identified in the Statement of Claim dated March 3, 2021 (“Agreement”); and,
the Claims Abstract of the Mining Recorder created on July 29, 2024.
2Precambrian commenced an action in the Court (Court File No. CV-24-00012087-0000) on July 24, 2024 by way of a Statement of Claim naming 2801773 Ontario Inc. as the Defendant. This Proceeding is currently pending before the Court, and relates to a dispute regarding the Agreement for the purported sale of the mining claims from Precambrian to 2801773 Ontario Inc.
3The Statement of Claim sets out contractual provisions whereby Precambrian transfers the mining claims in exchange for payment (“purchase price”), which is required to be made on or before the two-year anniversary date of the Agreement. The Agreement further requires 2801773 Ontario Inc. to perform certain work in order to keep the mining claims in good standing and grants Precambrian a royalty of 20% of gross sales (“royalty”) from all material removed from the property, subject to 2801773 Ontario Inc.’s costs. The royalty and all other obligations of 2801773 Ontario Inc. terminate once the purchase price for the mining claims has been made in full to Precambrian. The Agreement contains a provision for Precambrian to elect to have the mining claims transferred back to it in the event of default for non-payment of the purchase price or the royalty.
4The Statement of Claim also sets out Precambrian’s claim that the Parties mutually agreed to extend the date for payment of the purchase price to March 3, 2023 and then further to March 3, 2024. Precambrian sets out that a Notice of Default was sent by Precambrian to 2801773 Ontario Inc. on or about May 23, 2024 demanding the mining claims be transferred back to Precambrian, and 2801773 Ontario Inc. has failed to comply.
5Through the Statement of Claim, Precambrian pleads that 2801773 Ontario Inc. has failed to pay any of the purchase price, failed to perform and file any of the work to keep the mining claims in good standing and is in breach of the Agreement and that, in addition to other monetary claims, Precambrian is therefore entitled to have the mining claims transferred back to it.
6In support of the Application, the Tribunal received a Mining Abstract listing the mining claims held by 2801773 Ontario Inc., which are the subject of the Court proceedings and for which Precambrian is requesting the Order of pending proceedings from this Tribunal.
DISCUSSION
7The Tribunal has reviewed the materials and information provided by Precambrian and is satisfied that 2801773 Ontario Inc. is the claim holder of the mining claims as identified in the Mining Abstract that was submitted to the Tribunal on July 29, 2024. These mining claims are the subject matter of the Application and are identified in Schedule A, which is attached to this Order.
8Pursuant to s. 64(2.2) of the Act, any party to a proceeding may request an order from the Tribunal:
Proceeding pending before court
(2.2) Where a proceeding relating to a mining claim or other recorded right, or any interest relating to such a claim or right is pending before a court, the Tribunal may, upon the request of any party to the proceeding, make an order confirming that the proceeding is pending and requiring a recorder to make a note of the pending proceeding on the applicable mining claim abstracts.
9In order for the Tribunal to make such an Order, pursuant to this section of the Act, the Tribunal must, in this case, be satisfied that:
a proceeding has been commenced by Precambrian before the Court against 2801773 Ontario Inc.;
the proceeding remains undetermined by the Court and therefore is pending;
the proceeding advances some manner of claim for relief against the Defendant registered claim holder of the mining claims, claiming an interest in the mining claims; and,
the mining claims, which are the subject matter of the action pending before the Court, are the same as the 39 mining claims owned by 2801773 Ontario Inc. and identified as the subject of this Application for an Order of pending proceedings.
10Based on the facts outlined above, the Tribunal confirms that a proceeding has been commenced by Precambrian against 2801773 Ontario Inc. and remains pending in the Court (Court File No. CV-24-00012087-0000), having been commenced on July 24, 2024.
11Upon review of the Statement of Claim and the Agreement, which form the contractual basis for the claims against 2801773 Ontario Inc., the Tribunal is satisfied that the proceeding before the Court relates to the claim by Precambrian to an interest in the 39 mining claims owned by the Defendant, 2801773 Ontario Inc., as listed in Schedule A to this Order.
12Precambrian is a party Plaintiff to the Court proceeding and therefore, the Tribunal finds that Precambrian is permitted by the Act to request, and may obtain, an Order that Note of Pending Proceedings be registered against the 39 mining claims held by 2801773 Ontario Inc. as the claim holder of those claims pursuant to s. 64(2.2) of the Act.
13It will remain for Precambrian to establish to the Court, based upon evidence presented, that it has a right to become the registered owner of the 39 mining claims.
ORDER
14The Tribunal Orders that the Provincial Mining Recorder make a Note of Pending Proceedings on the abstracts of the 39 mining claims identified in Schedule A to this Order, nunc pro tunc, to be effective retroactively from, and as of, July 24, 2024. The Note of Pending Proceedings shall remain on the abstracts until such time as the aforementioned proceeding in Court File No. CV-24-00012087-0000, as it asserts an interest in the 39 mining claims, has been determined by an Order of the Ontario Superior Court of Justice, is dismissed, or is withdrawn, or alternatively, upon Order of the Tribunal for removal in accordance with s. 64(4.1) of the Mining Act.
15The Tribunal further directs that a copy of this Order shall be forwarded to the Provincial Mining Recorder’s Office in accordance with s. 64(2.3) of the Mining Act and the Provincial Mining Recorder is hereby directed to amend the records in the Recorder’s Office as necessary and in accordance with s. 129(4) of the Mining Act.
“S. Braun”
S. BRAUN
VICE-CHAIR
Ontario Land Tribunal
Website: www.olt.gov.on.ca Telephone: 416-212-6349 Toll Free: 1-866-448-2248
The Conservation Review Board, the Environmental Review Tribunal, the Local Planning Appeal Tribunal and the Mining and Lands Tribunal are amalgamated and continued as the Ontario Land Tribunal (“Tribunal”). Any reference to the preceding tribunals or the former Ontario Municipal Board is deemed to be a reference to the Tribunal.
SCHEDULE A