Many bidders could show interest in shuttered Red Lake mine should court approve sales process
Pure Gold Mining could have the ‘For Sale’ sign out for its Red Lake mine as early as Thursday. The insolvent Vancouver gold company, now under creditor protection, heads to a B.C. court Nov. 9 to petition for the sales process to begin immediately of its underground mine, processing mill and 4,600 hectares of gold property.
According to recent court documents, the company is asking for a stay of proceedings until Jan. 27, 2023 and permission to start the sales and investment solicitation process (SISP). National Bank Financial will be the sales agent.
Facing a severe cash crunch this fall, Pure Gold suspended mining and milling operations on Oct. 24, placing the mine on care and maintenance. The company entered creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on Halloween. KSV Restructuring is the court-appointed monitor.
The sales process actually started last summer when Pure Gold launched a strategic review process. The latest monitor’s report said there was “significant interest” from “many parties,” who might still be interested, even though it didn’t result in a sale at the time.
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