IAMGOLD Corporation ("IAMGOLD") was successful in its response to an application for a royalty preservation order under Rule 45.01.
The applicant was the estate of the sole shareholder of Superior, a company dissolved in 1989. It sought an order compelling IAMGOLD to preserve a royalty. IAMGOLD had purchased that royalty in 2021 from the Government of Ontario (specifically, the Public Guardian and Trustee) under the Escheats Act. The Estate wanted to revive Superior in an effort to challenge the sale on the basis that the Forfeited Corporate Property Act should have applied to the sale, and so, it was the Minister of Government and Consumer Services that had the authority to sell the royalty rather than the Public Guardian and Trustee. The attempt to revive Superior failed in the legislature in March, 2022.
Despite the failure of the revival, the estate persisted with the application for a preservation order, which was heard in June 2022. The application was dismissed on the basis that the applicant, being the estate of the former shareholder of Superior, did not have any rights in respect of the royalty, as the royalty belonged to Superior. The presiding judge also ruled that Rule 45.01 (permitting interim orders for preservation of property) was not available as a standalone ground of relief in the absence of an underlying proceeding.
Fasken represented IAMGOLD with a team comprised of Zohar Levy and Chad Pilkington.
Jurisdiction
- Ontario
