A Goldmine developer who lost a federal court battle against his company for a $2 million royalty payout is now happy with the result.
The federal government agreed to pay $2,086,000 to B.C.-based owner Mark Pincus and his brother, Mark Pinchuk, after the Crown appealed the ruling.
Pinchuk’s company won the suit in B.A.C. Supreme Court, and he and his brothers won a $500,000 federal government grant in a separate court.
Pincus said in a statement Wednesday he’s pleased the Crown has accepted the settlement and will soon be working with a new company.
“We have agreed to work with a company to develop a new mining facility and will shortly be working together with an external consultant to complete the final design of the facility,” Pinchus said.
“The facility will include an advanced processing facility and a mine site.”
The settlement comes after the two brothers won $500 and $1.2-million in federal royalty payments in a ruling by the federal government.
The Pinchuses said they have received a “positive” response to the settlement, but still have many more to work out.
“I’m extremely happy with how the outcome has turned out, the outcome of the appeal was a big win for our company,” Pincuss said.
“However, there’s still more work to be done.
The federal court ruling came as part of a broader dispute between Pinchuss and the Crown over royalties paid to a subsidiary of Pinchuh’s company.”
Once the final deal is in place, we’ll begin negotiating with a third party and start the process of construction.”
The federal court ruling came as part of a broader dispute between Pinchuss and the Crown over royalties paid to a subsidiary of Pinchuh’s company.
The Crown alleged Pinchuks subsidiary, Goldmine Mining Inc., didn’t pay royalties to the Pinchuzes and didn’t properly record royalties.
The court ruling stemmed from a lawsuit filed by the Pincuses against Pinchushk, a subsidiary owned by Pinchusk.
The Crown said Pinchunks subsidiary had to pay royalties from Goldmine’s mining rights to the brothers.
“The Pincushk family was unaware that the Crown had acquired an interest in Goldmine from Pinchupuk and that the Pinches had not been paid the royalties that they had received,” the Crown said in its decision.
The case went to the Supreme Court of Canada in 2013, where a majority of justices sided with the Pilsons.
The court also said the Pinsers owed the government an amount of money that the government owed the brothers, and the government should have paid the brothers the royalties.
A jury awarded the brothers $2-billion in royalties.
