Court upholds Troilus award

The British Columbia Court of Appeal has dismissed an appeal by Homestake Canada, a subsidiary of Barrick Gold (ABX-T), against the January 2001 judgment of the province’s Supreme Court awarding $88 million to Inmet Mining (IMN-T) over the failed sale of the Troilus gold mine in north-central Quebec.

Homestake had sought to have the decision overturned after the lower court found it was in breach of contract and should have closed its purchase of the mine from Inmet. Homestake had contended at trial that the Inmet database was inadequate for assessing the resource at Troilus, but the court found the company had not relied on any missing or inadequate information in offering to buy the mine.

Inmet had asked the trial court to order specific performance of the sale contract, but instead the court awarded the difference between the agreed purchase price ($178 million) and the estimated value of the mine at the time of the trial ($90 million). Inmet also received costs.

In the appeal, Inmet had launched a cross-appeal asking the court to order payment of pre-judgment interests. The cross-appeal was granted. The total settlement, including costs, is estimated at $112 million.