A Toronto-based company is taking legal action against the British Columbia government, claiming it was unjustly deprived of its mining rights on an island off the northwest coast as part of an arrangement with the Gitxaała Nation.
Lawsuit Alleges Unfair Treatment
In a lawsuit filed in B.C. Supreme Court, MCC Canadian Gold Ventures Inc. asserts that it was initially asked to salvage a small gold mine on Banks Island, located approximately 110 kilometres south of Prince Rupert. However, the company contends that the provincial government later stripped its mining rights to mitigate the effects of another court ruling involving the Gitxaała First Nation.
“We are deeply disappointed with the actions of the provincial government,” stated Danish Mir, a company director, in a written statement. “If this is what the government considers Indigenous reconciliation, then every investor in B.C. faces grave risk.”
Company's Investment and Losses
The company claims it invested millions of dollars in the mining property, including cleaning up environmental damage left by the previous owner. As a result of losing its rights, MCC Canadian Gold Ventures says it cannot proceed with the project. The firm is seeking compensation for the market value of its mining leases, lost investments, business losses, loss of goodwill, and associated costs and expenses.
The province has not yet filed a response in court. The B.C. Ministry of Mining and Critical Minerals stated this week that it had not been served with the claim and declined to comment, as the matter is before the courts.
Background of the Banks Island Mine
Problems at the Banks Island mining property first came to public attention over a decade ago. The original operator was ordered by the province to shut down the mine in 2015 due to pollution and improper use of ore from exploration sites. The operator was eventually charged in court, and the company went into receivership.
In 2016, the province indicated it was in discussions with the leading creditor, MCC Non-Ferrous Trading—the parent company of MCC Canadian Gold Ventures—about the conditions required to reopen the small mining property. According to the lawsuit, the company purchased the mining interests in 2019.
Gitxaała Nation's Opposition
During the earlier mine troubles, the Gitxaała First Nation made it clear to the province that they opposed mining on Banks Island. “It’s a no-go zone for mining,” said Clifford White, the chief at the time.
In 2021, the Gitxaała launched a court challenge against the province’s free-entry mineral claims system, which allows registering claims online without consulting First Nations. They argued it violated the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), which the B.C. government adopted in 2019.
Court Rulings on Indigenous Rights
A 2023 court ruling found that the mineral claims system did not meet the province’s duty to consult with First Nations, giving the province 18 months to create a constitutionally compliant system. In the Gitxaała’s appeal, decided in December 2025, the court ruled that UNDRIP is legally enforceable and not merely symbolic.
MCC Canadian Gold Ventures now argues that the B.C. government’s actions effectively stripped its mining rights to offset the impacts of that ruling, leaving the company with substantial losses and no path forward.
