Cream Silver sues B.C. government for compensation

As part of an ongoing battle with the British Columbia government, Cream Silver Mines (VSE) is taking the next step in its efforts to be compensated for the “expropriation” of its right to explore and develop certain mineral claims on Vancouver Island. The court case is to begin Feb. 25 in the Supreme Court of British Columbia. The legal action involves claims held by the company for over 20 years in the Strathcona Provincial Park.

Cream Silver is of the view that enough work was done on the claims to indicate “significant mineral value exists.” But the company said it was prevented from further exploring the claims when the government refused to grant a park use permit even though Westmin Resources (TSE) has operated a base metal mine a short distance away for more than 25 years.

The company said it was not compensated for its loss, despite government statements that indicated compensation would be payable to all those affected by the change in government policy.

In a separate matter, Cream Silver settled a long-standing dispute with Westmin Resources for a group of claims inside Westmin’s park use permit within Strathcona Park.

Cream Silver dropped legal action against Westmin, which in turn terminated a 1971 agreement between the two companies.

Cream Silver also agreed to drop any interest in the claims, with the exception that it will retain a 35% net profits interest after recovery of costs required to develop the claims.