News & Publications Results

This is Lawson Lundell's web-based publication dedicated to keeping readers informed about developments in Canadian mining law.

This paper provides a general sense of how hard rock mining law works in Canada by examining topics such as the Canadian legal and political structure; foreign investment; aboriginal title and rights; environmental law; the Yukon, Northwest Territories and Nunavut; and British Columbia. It was presented at the Rocky Mountain Mineral Law Foundation Mining Law Short Course.

This is Lawson Lundell's web-based publication dedicated to keeping readers informed about developments in Canadian mining law.

This is Lawson Lundell's web-based publication dedicated to keeping readers informed about developments in Canadian mining law.

A discussion of three recent decisions in the Yukon Supreme Court, the Federal Court of Canada and the Supreme Court of British Columbia, and their impact on the duty to consult and accommodate Aboriginal peoples; the environmental assessment of a proposed mining project; and Aboriginal title and rights.

This paper discusses approaches that have been used in Canada to identify and foster private sector, public and aboriginal participation in dealing with mining environmental liabilities and orphan sites.

This is Lawson Lundell's web-based publication dedicated to keeping readers informed about developments in Canadian mining law.

National Instrument 43-101 is a rule issued by the Canadian Securities Administrators to develop uniform Canadian standards to govern how issuers disclose scientific and technical information about mineral projects to the public. Its aim was to restore public confidence in mining-related stocks by enhancing the accuracy and integrity of public disclosure in the mining sector.

This paper is intended as an introduction to the subject of diamond royalties and marketing agreements in Canada. Diamonds are marketed and sold on the basis of the distinctive characteristics of each stone. The process of diamond sales therefore involves a degree of subjectivity absent from fungible mineral commodity sales in the international commodities market where published prices are readily available.. The paper briefly discusses diamond geology, diamond production and diamond marketing practices. It will then address the use of diamond royalty agreements and diamond marketing agreements in Canada and present practical guidance for transactional attorneys regarding the specific issues which should be considered in drafting these documents.

Each type of royalty creates different advantages and disadvantages for the royalty owner and the operator. It is particularly interesting to compare and contrast a net smelter returns royalty (NSR) with a net profits interest (NPI).

Before examining the different types of royalty in detail, it may be useful to consider the dynamic which influences all royalty agreement negotiations, and all subsequent disputes and litigation between the operator and recipient. Known as the “royalty value theorem”, it states: “When compensation under a contract is based upon a set percentage of the value of something, there will be a tendency by each party to either minimize or maximize the value.” There are two major types of royalties in use in the North American mining industry today. They are the net smelter returns royalty and the net profits interest royalty. A third type of royalty, the gross overriding royalty, is sometimes used in relation to diamonds and thus is becoming better known outside the oil and gas industry, where it had its origins.