Cline Mining Corp. (TSX: T.CMK, Stock Forum) is taking legal action against the British Columbia government, seeking up to $500 million in compensation for the alleged expropriation of coal properties located in the Flathead Valley in southeastern B.C.
Toronto-based Cline has filed a notice of civil claim in the B.C. Supreme Court, and said it wants a declaration that its rights under its coal licenses and coal license applications for the Lodgepole, Sage Creek and Cabin Creek properties were expropriated or injuriously affected as a result of B.C.’s passing of the Flathead Watershed Area Conservation Act.
In a press release, the company said it also wants a declaration that its rights were injuriously affected by the province’s passing of an order in council that created a mineral and coal land reserve on all lands within the Flathead Watershed area.
The civil claim seeks compensation, including, but not limited to, the loss of value of the licenses and applications for licenses for these properties, estimated in excess of $500 million on a net present value basis over the expected lives of the mines.
Cline said it has retained counsel at Fraser Milner Casgrain LLP in Vancouver to advance the legal proceedings on its behalf.
Trading at 95 cents, Cline Mining has a market cap of $198.2 million, based on 208.6 million shares outstanding. The 52-week range is $2.92 and 56 cents.