If you’re a gold explorer or producer, always own the mineral rights underneath the land in which you operate. It may seem like common sense, but for Skeena Resources (TSX: SKE), it may turn out to be an expensive lesson.
The company this morning indicated that a decision had been made by British Columbia’s Chief Gold Commissioner as it relates to Eskay’s Albino Lake Storage Facility. In a bizarre story, an individual, Richard Mills, owns a mineral claim underneath Skeena’s Albino Lake Storage Facility, the facility being part of the Eskay Creek project.
Mills in August 2021 had asked the Commissioner for a determination on whom had ownership of the minerals within materials deposited at the the storage facility by previous operators of the mine. Materials deposited include tailings and minerals from the Eskay Creek Mine.
Yesterday, the Commissioner determined that ownership of all materials and tailings at the Albino Lake Storage Facility fall to Richard Mills – despite Skeena being responsible for the ongoing environmental obligations. The materials are currently managed by the firm under a Lands Act surface lease.
While the company has indicated that it intends to appeal the process and “utilize all legal avenues,” the lesson here appears to be simple – if you’re going to accept the environmental liability for historic materials, make sure you actually own the rights to them – and the mineral claims for where they’re situated.
Skeena Resources last traded at $13.51 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
