CANADA Law and Practice Contributed by: Darrell Podowski, Jennifer Poirier, Joel Matson and Simi Fagbongbe, Cassels Brock & Blackwell LLP
5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining Domestic and international securities markets play an especially crucial role in the financing of mining projects in Canada. Junior companies rely on rais - ing capital through Canadian equity markets (and, in some cases, other markets, such as the United States, Australia and London), especially at the early stages of a project. The amount of investment a junior com - pany can attract depends on commodity prices, world economic health, the state of global mining cycles and competition from other industries for this risk capital. 5.6 Security Over Mining Tenements and Related Assets The types of security available over mining-related assets in Canada differ depending on the stage of development and the location of the project. For exploration-stage projects of Crown minerals, a lender or financer can obtain minimal security due to the nature of the mineral tenure that is granted early in a project in most provinces or territories. The type of security that can be granted will depend on the statute creating the interest and the related registry. Some statutes deem mineral claims to be a form of personal property, while others deem them to be an interest in land equivalent to a lease. Regardless of the interest, land title statutes and per - sonal property security legislation typically do not apply to Crown minerals, and security must be reg - istered in accordance with the mining statute. Most provincial mineral statutes and registries will, how - ever, allow notices to be filed on mineral claims, giv - ing notice of the security granted over such mineral claims. Many of these statutes do not provide a pri - ority regime and are merely a notice to third parties regarding a potential encumbrance or interest, and the priority is governed by common law. As a project advances, most companies will upgrade their mineral claims to a more secure type of tenure, typically a mining lease (or equivalent). In most juris - dictions, mining leases are considered an interest in land and, therefore, mortgages and other encum - brances can be filed on title, which could provide
priorities and enforcement rights to lenders or other financers, depending on the jurisdiction and nature of the mining tenure. When the project has advanced to the stage of mine construction, the security for project financing is generally provided at the project level, by the project entity that owns the project and the minerals. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Exploration and Investment Investor interest in the Canadian mining sector has been bolstered in recent years by: • higher commodity prices, particularly for precious and energy-related minerals and metals; • global demand for green energy-related minerals and metals; and • traditional investment diversification during times of economic uncertainty. Precious metals (mainly gold) continued to be Can - ada’s leading commodities in 2024, but to a lesser extent as more funding is being directed toward critical minerals projects, including those hosting rare earth elements. Exploration spending for uranium has also climbed significantly in recent years, and this trend is expected to continue. In 2025, the government of Canada announced a CAD2 billion “critical minerals sovereign fund” to be applied towards project invest - ments, loan guarantees and offtakes. In 2024, Canada’s exploration spending remained similar to the previous year, and long-term forecasts suggest more growth for both junior and senior mining companies as demand strengthens for precious met - als and clean energy transition minerals. Reconciliation With Indigenous Peoples Recognition of Aboriginal title over private lands In August 2025, the British Columbia Supreme Court found that the Cowichan tribes hold Aboriginal title over roughly 800 acres in the City of Richmond, Brit - ish Columbia, including over private lands used for residential, commercial and industrial purposes ( Cow-
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