American Creek Resources Ltd. v. Teuton Resources Corp., 2013 BCSC 1042

American Creek Resources Ltd. v. Teuton Resources Corp., 2013 BCSC 1042

This mid-trial ruling in the context of a breach of contract case serves as a reminder that, at least in British Columbia, mining companies may not be able to rely on their own employees to provide opinions about specialized mining processes. Barring exceptional circumstances, independent experts should be obtained.

In 2007, American Creek Resources Ltd. (American Creek) and Teuton Resources Corp. (Teuton) entered into an option agreement related to Treaty Creek, a property in northwestern B.C. that was owned by Teuton. Under the agreement, American Creek would earn a 51% interest in the property if it spent a specified amount on exploration expenditures. Teuton agreed that American Creek had spent more than the specified amount, but disagreed that all amounts should qualify as exploration expenditures. In support of its position, Teuton's president attempted to give evidence on a number of