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Mining royalties: is Quebec so different?

Thursday, June 08, 2017 @ 8:37 AM | By Mylany David and Pascal Archambault

Recently, in Third Eye Capital Corp. v. Dianor Resources Inc. 2016 ONSC 6086, the Ontario Superior Court of Justice rendered a decision that illustrates the importance of carefully drafting and arranging royalty agreements if the intended result is to have the royalty interest “run with” the land — i.e., to be enforceable against third parties, such as new owners, instead of just a contractual right enforceable against the grantor personally.

The court followed the test enunciated in Bank of Montreal v. Dynex Petroleum Ltd. 2002 SCC...