The St. Lawrence fluorspar mine looks to be back in business.
The Supreme Court this morning granted an extension to finalize the purchase with investors who plan to re-start the operation.
That’s a huge relief for the Burin Peninsula town and surrounding area, after former operator Canada Fluorspar shut down the mine in February and filed for interim receivership.
Production was halted and about 250 workers were laid off as the company sought to avoid bankruptcy, and the search began for a new owner.
(Photo via Canada Fluorspar.)
Turns out there were numerous parties from around the globe interested in the business, according to Phil Clarke with Grant Thornton, appointed by the court to oversee the process.
And while the potential new owners can’t be named until the transaction closes, Clarke confirmed their intentions.
“My understanding the intent of the successful bidder is to open the mine,” he said.
All parties return to court in late September to seek formal approval of the sale.
They’ll then have until October 17th to seal the deal.
The court process had freed up $6.5 million to keep the operation warm while the company and creditors worked on a restructuring plan and search for new investors.
The interim cash came from the provincial government and major creditor Bridging Finance Inc. on a 50-50 split.
The $3.25 million loan from the government would be in addition to $17 million initially approved in 2011 by the PC government. That plan was re-worked and re-approved by the Liberals in 2017.
To date, the province has received more than $1 million in interest payments from the now-insolvent Canada Fluorspar, with the balance of the loan still due by the end of this year.
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 of the pandemic.
The inability to continue with construction and expansion of the mine, as well as issues with a new docking terminal, were also factors leading to lost revenue.
Fluorspar is used in the manufacture of aluminum, gasoline, insulating foams, refrigerants, steel and even uranium fuel.