Main creditor for Banks Island Gold contemplates reopening Yellow Giant mine – by Gordon Hoekstra (Vancouver Sun – June 28, 2016)

The main creditor of bankrupt Banks Island Gold is contemplating reopening the remote Yellow Giant mine, which was shut down last year by the province over environmental and permit violations, according to the B.C. ministry of mines.

The ministry says it has had discussions with the leading creditor, MCC Non-Ferrous Trading, about what it would take for it to reopen the small mine on Banks Island, about 100 kilometres south of Prince Rupert, including applying for permit amendments.

That discussion is taking place after a B.C. Supreme Court-appointed receiver did not receive any successful bids for Banks Island Gold, Ministry of Energy and Mines spokesman David Haslam said in a written response to questions from The Vancouver Sun.

The ministry is interested in securing a new owner for the mine, in part because if none is found, the province will be responsible for cleanup and remediation. The province holds $450,000 in security from Banks Island Gold for the Yellow Giant mine, but that will not cover the full remediation costs, B.C. Chief Inspector of Mines Al Hoffman told a legislative committee earlier this month.

Ministry staff do not yet have a final figure for cleanup and remediation, said Haslam.White Plains, N.Y.-based MCC Non-Ferrous Trading could not be reached for comment, and its legal representative in Vancouver, Colin Brousson, declined to comment.

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