An Ontario Superior Court judge has determined that a right-of-first-refusal provision in a shareholder agreement is as good as gold. On June 26 Justice Herman Wilton-Siegel dismissed claims by Barrick Gold Corporation against three rival minersXstrata plc, Goldcorp Inc., and New Gold Inc.in a dispute over the acquisition of a majority stake in the El Morro copper and gold project in Chile.
Swiss miner Xstrata, which owned 70 percent of El Morro, agreed in October 2009 to sell the stake to Toronto-based Barrick for $463 million if Vancouver-based New Gold, which owned the other 30 percent, opted not to exercise its right of first refusal over Xstrata’s interest within 60 days. News of the El Morro agreement got the attention of Vancouver-based Goldcorp, which swooped in, struck a deal with New Gold, and threw in an extra $50 million.
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