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ARTICLE · 14 MARCH 2013

Avanti v. Argex, 2012 ONSC 4395

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In this case, the Ontario Superior Court applied the real and substantial connection test developed by the Supreme Court of Canada in Van Breda to an application concerning a dispute over the termination of a mining services agreement.

CanadaEnergy and Natural Resources
Mining Prospects
Mining Prospects
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In this case, the Ontario Superior Court (ONSC) applied the real and substantial connection test developed by the Supreme Court of Canada in Van Breda (see above) to an application concerning a dispute over the termination of a mining services agreement.

The services agreement was between Avanti Management and Consulting Limited (Avanti) and Argex Mining Inc. (Argex) and was in respect of services to be provided to Argex by Mr. Michael Dehn, in the capacity of Head of Technology and Business Development. Argex owned three mineral properties in Québec containing titanium ore. In order to extract and purify titanium oxide from the titanium ore, Argex uses a process over which the Ontario company Canadian Titanium Ltd. (CTL) owns the patent. The services agreement contemplated Mr. Dehn's involvement in the development and commercialization of the extraction process. Argex terminated the services agreement when it learned that Mr. Dehn was to become the president of a

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