Facts: 0116064 B.C. Ltd., as a former shareholder of Rye Patch Gold Corp., alleges that its shares were undervalued in a transaction with Alio Gold Inc. due to false representations made by Alio concerning its gold production projections. This transaction was part of a court-approved plan of arrangement.

Issue: The core legal issue revolves around whether the representations made by Alio were indeed false or misleading and whether these purported misrepresentations affected the share exchange ratio, thereby causing financial loss to the shareholders of Rye Patch.

Court's Ruling: The Supreme Court of British Columbia certified the case as a class proceeding, allowing it to move forward on behalf of all affected shareholders. The court found that the pleadings disclosed a cause of action for common law negligent and fraudulent misrepresentation and that there was an identifiable class of two or more persons with common issues that could be resolved collectively in a class proceeding.

Costs/Damages: The decision provided in the document does not specify the amount of costs or damages awarded. It focuses on the certification of the class action, which is a preliminary step in the litigation process. The determination of liability and assessment of damages would occur in subsequent proceedings if the class action is successful.