Lexpert Special Editions

Lexpert Global Mining 2018/19

The Lexpert Special Editions profiles selected Lexpert-ranked lawyers whose focus is in Corporate, Infrastructure, Energy and Litigation law and relevant practices. It also includes feature articles on legal aspects of Canadian business issues.

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4 LEXPERT | 2018/19 | WWW.LEXPERT.CA Officers and directors of any public company have a minefield of obligations that can result in liability. ose involved with mining companies have the same and more. e biggest challenge facing anyone who sits on a mining company board is not so much that laws have changed, it's that standards have changed, says Erik Richer La Flèche, a partner at Stikeman Elliott LLP in Montréal. "Directors have to be proactive; they actually have to go out and search, ferret out information, inquire and actually try to explore what's going on within their companies." He says a serious problem confronting many mining companies is simply getting a project across the finish line and into production in the face of community opposition. Many projects drag on for a decade. Shareholders may buy the stock on the news of a new mine and, eventually discouraged, end up selling when there is no pro- duction despite all the time and money invested. at's where the rubber hits the road. Richer La Flèche says he believes the state of negotia- tions with local communities may be — or are about to become — a disclosure issue in an era of shareholder activism. "From a disclosure point of view, today you'd probably be smart to indicate whether you have buy-in. I think your relations with the local com- munity and with First Nations should be an el- ement of disclosure. It hasn't happened yet but somebody could go out and say: 'You have good geology, you have all your permits, but you don't REGULATIONS NAVIGATING THE REGULATORY MINEFIELD PHOTO: SHUTTERSTOCK BOARD MEMBERS, OFFICERS OF MINING COMPANIES NEED TO BE AWARE OF RISKS BY SANDRA RUBIN

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