End may be near for NA Tungsten mine
Last updated 11/29/2015 at Noon
North American Tungsten Corporation Ltd. Nov. 19 reported that the Supreme Court of British Columbia has extended a stay of company's creditors' arrangement act proceedings until March 31, 2016.
The court also expanded the powers of Alvarez & Marsal Canada Inc., the monitor appointed by the court to oversee and assist the company during the bankruptcy hearings.
Due to liquidity issues, North American Tungsten filed for court protection in June and later sought court approval to market and sell its assets.
The company also sought approval of an operating plan that involved transitioning the Cantung mine in eastern Yukon Territory to care and maintenance if no purchaser was found.
Due to the lack of interested buyers, the mill was shut down on Oct. 26 and the mine has transitioned to care and maintenance.
The Government of Canada will fund the environmental care and maintenance activities at Cantung mine, which will take place under the supervision of the monitor.
The B.C. Supreme Court also authorized certain equipment financers to take possession of equipment not required for care and maintenance operations; and approved the sale of North American Tungsten property located in the Selwyn mountain range in an area straddling the territorial border between Yukon and the Northwest Territories to the Government of the Northwest Territories.
Kurt Heikkila, Dennis Lindahl and Ronald Erickson have resigned from North American Tungsten's board of directors.
Heikkila also has resigned as chief executive officer, and Dennis Lindahl has resigned as chief financial officer.