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Detour Gold Corporation litigates whether a net profit interest is an interest in land

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Detour Gold Corporation

In August 2017, Prism Resources Inc. (“Prism”) commenced an action against Detour Gold Corporation ("Detour") in the Supreme Court of British Columbia (the “BC Action”). In response, Fasken brought a jurisdictional challenge to the BC Action, which ultimately resulted in the BC Action being stayed by the Supreme Court of British Columbia in August 2018 on the basis that Ontario was the more appropriate forum for the litigation.

In April 2019, Prism then brought the same allegations in the Ontario Superior Court of Justice (the “Ontario Action”) seeking, among other things, a declaration that its purported 7.5% net profit interest was an interest in land and therefore enforceable against Detour. 

Prism subsequently brought a summary judgement motion which was heard on March 5, 2021. On April 1, 2021, Justice Papageorgiou declared that Prism holds a valid and enforceable 7.5% net profits interest in the Claims. Detour withdrew its claim for monetary damages at the summary judgement motion hearing. 

On June 14, 2021, Detour appealed that decision to the Ontario Court of Appeal. The Court of Appeal first granted Detour's preliminary motion to file reply argument. It then upheld the motion judge's ruling, finding that the language granting the net profits interest was sufficient to create an interest in land and continuing to develop the law regarding the nature of mining royalties.

Fasken advised Detour with a team led by Zohar Levy and including Harry Skinner and Tracey Cohen.


  • British Columbia
  • Ontario



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