Yukon Zinc’s Wolverine minesite in 2009. The Yukon government’s bid to have the Wolverine mine put into receivership will be allowed to proceed again after a YukonSupreme Court justice lifted a temporary stay on the proceedings. (John Thompson/Yukon News file)

Judge lifts stay on Wolverine mine proceedings

Yukon government wants the troubled mine placed into the hands of a receiver

The Yukon government’s bid to have the Wolverine mine put into receivership will be allowed to proceed again after a Yukon Supreme Court justice lifted a temporary stay on the proceedings.

The matter was put on pause Aug. 1, the day the Yukon government’s petition to have the troubled mine placed into the hands of a receiver was set to be heard, after mine owner Yukon Zinc Corp. revealed it had filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act the day before.

Such a filing puts an automatic stay on any legal proceedings against the company for 30 days.

Yukon Zinc owes more the $25 million in security for the Wolverine mine, and the Yukon government has stepped in to take on remediation and environmental mitigation efforts after several failures to do so by the company.

Yukon Zinc lawyer Kibben Jackson had argued that a Yukon court had no authority to lift the stay since the notice had been filed in Vancouver, where the company’s head office is located, and that the Yukon government would need to travel to British Columbia in order to properly apply for the stay to be lifted.

However, in a decision released Aug. 7, Yukon Supreme Court Justice Suzanne Duncan wrote that despite having its headquarters in Vancouver, Yukon Zinc has”more substantial connections to the Yukon in this matter” — the mine and its associated assets and employees, as well as any “costs and consequences” associated with the mine’s remediation, are in the territory. The British Columbia courts have also not been “substantively engaged in the matter,” Duncan also wrote, and Yukon courts have the jurisdiction to preside over bankruptcy matters too.

She found that the Yukon Supreme Court had the authority to lift the stay, adding that the Yukon government “is materially prejudiced by the stay and it would be equitable to lift the stay to allow the petition to appoint a receiver to be heard.”

Contact Jackie Hong at jackie.hong@yukon-news.com

mining

Just Posted

Yukon parents, educators tackling learning at home amid a world pandemic

Yukon teachers will be assessing how to deliver education over the coming months

Whitehorse could soon see a local tool library

Proposed venture aims to give member access to tools without needing to buy them

Fifth COVID-19 case hits the Yukon

An individual tested positive over the weekend

UPDATED: Yukon declares state of emergency over COVID-19

Declaration should not cause panic, officials say, and risk level in Yukon remains unchanged

Yukon early childhood educators concerned about working during pandemic

Early childhood educator has circulated letter expressing concerns about care centres remaining open

Victoria Gold still operating Eagle Gold mine with COVID-19 precautions in place

The mine is still in operation but with precautions, including social distancing, in place

YTA, Yukon government reach agreement on hiring dispute out of court

YTA’s petition was set to be heard March 25 but was called off after the parties reached an agreement

City hall, briefly

Here’s a look at issues discussed by Whitehorse city council at its… Continue reading

Skagway has resolve in the COVID-19 struggle, mayor says

Skagway mayor said border access is important for residents.

Yukonomist: Steering your business through COVID-19

While “proofing” your business against the impacts might not be possible, being prepared is.

History Hunter: How the Yukon was spared the influenza pandemic of 1918

The isolation of the Yukon then afford the territory some protection that it doesn’t have today

Whitehorse city council contemplates OCP change for section of the tank farm

Change would allow for commercial industrial use instead of current residential classification

Truck slides off Dempster Highway

The truck left the road around 4 p.m. on March 19. The highway was closed until March 21 for cleanup.

Most Read