The sale of the Canada Fluorspar mine in St. Lawrence has hit a roadblock after the successful bidder failed to meet a key condition of its proposal to buy and continue operations.
Today’s court date was set to formally approve the sale to a company that has not yet been identified.
As part of the process, the company was required to “top up” its deposit toward the purchase price.
BREAKING || Sale of St. Lawrence fluorspar mine delayed, may be in jeopardy since “key (financial) condition” not yet met. Parties seeking further court extension until February to complete sale or find new buyer. @VOCMNEWS
— Brian Callahan (@briancallahan67) October 12, 2022
However, the court was told that the company did not meet the deadline to do that, derailing the sale process at least until February.
The development was very much last minute and has led to further complications involving work at the mine site to keep it ready for a re-start.
For example, heavy equipment company Caterpillar has inquired as to whether they can remove machinery from the site while the uncertainty around the buyer plays out.
Lawyers say that equipment is necessary to keep the mine in so-called warm idle.
The court has now granted an extension until the end of February, to either complete the sale or find another buyer.
Industry Minister Andrew Parsons says, unfortunately, the delay means layoffs at St. Lawrence.
Those layoffs will be effective this week, but government remains committed and optimistic that a deal will see the mine operational and people employed.
