The Supreme Court has granted a motion that allows the Canada Fluorspar mine in St. Lawrence to avoid bankruptcy for now.
Today’s ruling frees up $1.8 million to preserve the assets for at least the next seven days while the company and creditors finalize efforts toward a restructuring plan.
That plan calls for $6.5 million in total to sustain the operation for the next few months while efforts ramp up to seek and attract new investors to save the mine and its roughly 280 workers.
The $6.5 million would come from the provincial government and major creditor Bridging Finance Inc. on a 50-50 split.
The $3.25 million from the government would be in addition to the $17 million initially approved in 2011 by the PC government but re-worked and re-approved in 2017 to help revive the fluorspar mine.
To date, the province has received about $1.1 million in interest payments from the now-insolvent Canada Fluorspar, with the balance due at the end of this year. If the company goes bankrupt or defaults on the loan, the government has a second security position over the company’s assets behind Bridging Finance.
The mine was reactivated in 2018, but experienced a number of setbacks over the past two years, not the least of which was the impact from the pandemic.
The inability to continue with construction and expansion of the mine, as well as issues with a new docking terminal, were also significant factors leading to lost revenue.
The matter is due back in Supreme Court next Friday.