Ontario mine plagued with problems since production began last year
Vancouver-based Pure Gold Mining Inc. has applied for creditor protection a week after suspending its underground mining operations in Ontario.
The miner on Monday said it had applied for an initial order under the Companies’ Creditors Arrangement Act from the Supreme Court of British Columbia, adding it was considering “all available transactional and restructuring options” for the company.
“After careful consideration of Pure Gold’s cash position, scheduled debt payments, forecast revenue and expenses … the company has determined that it is in the best interests of Pure Gold … to file an application for creditor protection,” Pure Gold said in a press release.
The company on Oct. 24 suspended operations at its mine in Red Lake, Ont., about 100 kilometres from the Manitoba border, because it wasn’t able to obtain the financing needed to continue production and other activities. It also withdrew its production guidance for the fourth quarter.
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