Minto Metals placed in receivership, Yukon to get $1.7M to settle mining royalty lawsuit

New court orders have put Minto Metals Corp., which abandoned its central-Yukon mine in May, into full receivership and will also see the territorial government receive more than $1.7 million to settle a lawsuit over unpaid mining royalties.

The British Columbia Supreme Court approved the two separate but connected orders Monday. The orders came from the province's court because B.C.-incorporatedSumitomo Canada Limitedhad a purchase agreement with Minto, which was also registered in the province. The companyfiled apetition in B.C. courtafterMinto abandoned its mine, and the file was ultimately theone that triggered the receivership process.

The proceedings will nowbe transferred to the Yukon Supreme Court.

Per theorders, receiver PriceWaterhouseCoopers, which was previously only responsible for facilitating the sale of leftover copper concentrates, is now in charge of all of Minto's assets, undertakings and property, meaning it has the authority, among other things, to put the mine up for sale.

The receivership puts on pause the roughly two dozen legal claims filed against Minto since May 13, when the company suddenly announced it was ceasing all operations at its site near Pelly Crossing, Yukon.Claims for things like unpaid invoices will now be dealt with through the receivership proceedings.

The Yukon government remains in charge of operations and maintenance at the Minto site, and hired a contractor in May to perform on-site work.

The B.C. court also signed off on an agreement that will see PriceWaterhouseCoopers pay the Yukon governmentapproximately $1.77 million($1,340,034.42 US, the money earned from selling the concentrates) to settle a lawsuit alleging Minto didn't pay its Quartz Mining Act royalties in either 2021 or 2022. The government will then give the money to Selkirk First Nation; the mine is located on the First Nation's Category A settlement land, meaning it owns both the surface and subsurface rights.

The Yukon government's lawsuit stated Minto owed nearly $2.5 million in unpaid royalties.The settlement document states that Minto had actually directly paid Selkirk First Nation a royalty "advance" of $731,000 in 2022.

"Monday's court decisions provide legal clarity to support long-term planning for Minto mine," Yukon's Energy, Mines and Resources Minister John Streicker said in a news release Thursday.

"We believe it is a good outcome for the Selkirk First Nation and the Yukon While we acknowledge the possibility of the mine reopening at some stage in the future, our immediate priority remains ensuring that the environment is protected."

Selkirk First Nation Chief Sharon Nelson, in a separate news release, said that while the First Nation was pleased about the settlement payment, it also "remains concerned about Minto's failure to make severance and other payments" owed to citizens who were employed at the mine.

The news release also said the First Nation has had ongoing discussions with the Yukon government since Minto abandoned the site about actions needed to address and prevent "adverse effects."

"Our primary focus will always be the integrity of the environment," Nelson said.

The settlement does not cover a separate lawsuit Selkirk First Nation filed against Minto for more than $1.3 million in royalties allegedly owed under a separate agreement between the First Nation and company.