Cream Silver ponders claims appeal

A recent court ruling that Cream Silver Mines (VSE) is not entitled to compensation for the expropriation of its Strathcona Park claims may be appealed to the Supreme Court of Canada.

President Frank Lang said the company will seek “both moral and financial support” from the mining community, providing leave to appeal is granted. In February, the British Columbia Court of Appeal overturned a lower court decision in favor of the company and ruled it has no rights to compensation for the expropriated claims on Vancouver Island.

“The decision of the Court of Appeal is shocking news not only for the company but for the B.C. mining industry as a whole,” Lang said. “The ramifications . . . could be devastating with regards to certain rights of companies holding mineral claims in the province. The question mining companies will have to ask is whether they should risk working capital on exploration and development with no assurances of being permitted to bring a project to production or at least receive fair compensation.” The B.C. Court of Appeal noted a distinction between

the Cream Silver case and two similar cases (Tener and Casamiro). “The interests of the respondent, unlike the interests of Casamiro and Tener, are not Crown-granted mineral claims but simply mineral claims,” the court stated. “Such a piece of paper is merely evidence of entries in the books of the mining recorder. The interest thus evidenced is not one known to common law.”

The court also stated that the provincial legislature has, in recent times, stated an intent to place the question of development within parks under ministerial control, without imposing “any burden on the public purse from the exercise of that control no matter what form that control may take.” Cream Silver has other projects and had considered exploring its George claims in the Queen Charlotte Islands.

“Unfortunately this interesting property is also in British Columbia,” Lang said. “Before Cream proceeds to explore the George claims, it will be looking for greater definition, from the British Columbia government, of its changing policies with respect to the mining industry.”