On the move with Sprott and Greg Gibsonhttps://www.newspaperdaily.net/newspaper/usa/nevada.elko.elkodailyfreepress.php
Veris Gold is YNGFF
The new owner of Jerritt Canyon mines installed a sign at the Elko office on 30th Street.
11 hours ago • MARIANNE KOBAK
McKOWN mkobak@elkodaily.com
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ELKO – Veris Gold Corp. sold its Elko County gold mines Thursday to Jerritt Canyon Gold LLC, but most of the miners will remain on the job.
The assets sold include the Jerritt Canyon facilities and the underground mines Saval 4, Smith, SSX-Steer Complex and Starvation Canyon. The site is about 50 miles north of Elko.
Jerritt Canyon Gold President and CEO Greg Gibson said the majority of the 250 Veris Gold employees at the site were hired. He said about 20 of the employees, who were working in the Saval 4 Underground were laid off. However, those employees will have the opportunity to be hired by Small Mine Development, which will operate the mine, Gibson said. SMD already handles the operations in the other underground mines at Jerritt Canyon.
Jerritt Canyon Gold is a subsidiary of Sprott Mining which is controlled by Canadian billionaire Eric Sprott. Jerritt Canyon Gold owns 80 percent of Veris Gold’s assets and the other 20 percent is owned by Whitebox Asset Management, Gibson said.
“Mining was not suspended. Mining will be increased,” Gibson said. “However, there is a lot of work to do to get it where we want.”
He said the site is on track to produce 185,000 to 200,000 ounces of gold this year.
The sale of the site happened after a Canadian bankruptcy court ordered Veris Gold to sell its assets. Veris Gold had filed under Companies’ Creditors Arrangement Act in Canada, which is a type of bankruptcy protection, in June of last year. It was operating under the protection of the CCAA and the U.S. Bankruptcy Code since June 9, 2014.
The order to enforce the Canadian sale was filed June 4 in the U.S. courts.
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October 07, 2014
Veris Gold Corp. Announces DIP Financing
Vancouver, BC -- October 7, 2014 -- Veris Gold Corp. ("Veris" or the "Company") reports that on October 3, 2014 the Supreme Court of British Columbia made an order (the "DIP Order") authorizing the Company and its subsidiaries to enter into a debtor-in-possession financing agreement ("DIP Agreement") with Wbox 2014-1 Ltd. (the "DIP Lender") pursuant to which an aggregate amount of up to USD$12 million will be available to support the continued operations during the Companies' Creditors Arrangement Act ("CCAA") proceedings. In the Company's proceedings under Chapter 15 of the U.S. Bankruptcy Code (the "US Proceedings"), the DIP Order was recognized and enforced by the United States Bankruptcy Court -- District of Nevada pursuant to an order made October 6, 2014 (the "Recognition Order").
Continued protection under the CCAA and the US Proceedings, together with the new financing available under the DIP Agreement will provide the Company with additional time and stability to progress with its restructuring plan under CCAA. The Company continues to operate its gold producing mines and processing plant at Jerritt Canyon located in Elko County, Nevada.
The DIP Agreement is for a six month term with an optional extension period of three additional months and can be drawn on up to four times. The DIP Lender has a super-priority charge over all of the Company assets pursuant to the DIP Order and the Recognition Order.
The Company has been operating under the protection of the CCAA and the U.S. Bankruptcy Code since June 9, 2014.