Registration Of Securities On Mining Claims In Quebec: Have We Been Getting It Wrong?

It is common practice amongst mining law practitioners in Quebec to consider that the registration of a hypothec against a mining claim at the Register of Real and Immovable Mining Rights (known as "Gestim" and hereinafter referred to as the "Mining Registry") is sufficient to render such hypothec opposable against third parties. As set forth below, this practice may need to be reconsidered.

Section 8 of the Mining Act provides that mining claims and other mining rights are immovable real rights. As such, it is possible to register these mining rights at the Register of real rights of State resource development ("the Resource Register") which is part of Quebec's land registry system. Section 10 of the Mining Act goes on to say however that mining claims (and certain other mining rights) are exempt from registration at the [land] registry office. It should be noted that, as provided by Section 14 of the Mining Act, a registration at the Mining Registry is only