The Ontario Court of Appeal has released its much anticipated
second decision in Third Eye Capital Corporation v. Ressources
Dianor Inc./Dianor Resources Inc. The issue squarely before
the Court in this case was whether a vesting order granted in a
receivership proceeding could extinguish a third party's
interest in land in the nature of a gross overriding royalty
(GOR). The Court concluded that it had the
jurisdiction to do so. This appears to be the first case in Canada
to reach this conclusion in the context of a GOR.
Background and prior decisions
Before reviewing the Court's analysis and findings, it is
prudent to review the facts of this case as well as the prior
Dianor decisions. In 2015, a receiver was appointed over
the assets of Dianor, an insolvent exploration company focused on
the acquisition and exploitation of mining properties in Canada.
Dianor's main asset was a group of mining claims located in
Ontario and Quebec. In acquiring certain mining
