Harte Gold granted creditor protection by court, Australia’s Silver Lake Resources looks to take control of Sugar Zone Mine property
A prospective new owner of White River’s Sugar Zone Mine might not be determined until next spring, at the earliest.
So far, early front runner Silver Lake Resources of Australia has the inside track to acquire the underground operation. But things are looking bleak for common shareholders of Harte Gold.
Harte Gold, the insolvent owner of the three-year-old underground mine, announced late on December 7 that the Ontario Superior Court of Justice has granted the Toronto mining company’s application to enter creditor protection under the Companies’ Creditors Arrangement Act (CCAA).
The company now has protection for creditors for an initial period up to Dec. 16, the maximum permitted under the act. Harte’s Sugar Zone Mine is 30 kilometres north of White River. Approximately 260 people are on the payroll. The site and the exploration property is massive at more than 81,000 hectares.