Should ATN take over T.CMR?T.CMR is in the bankruptcy protection now, they desperately need cash to start production. I believe its a good project for Co Ni etc production. Should ATN take it over? Or wait for the auction?
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Toronto, Ontario, Aug 05, 2002 (Market News Publishing via COMTEX) --
Canmine Resources Corporation ("Canmine") has initiated a restructuring of its financial obligations under the Companies Creditors Arrangement Act ("CCAA"). As part of this process, the company has sought and obtained an Order for protection under CCAA before the Ontario Superior Court of Justice.
The effect of the Order is to stay the Company's current obligations to all creditors for a period of 30 days. During this period, or any extensions granted, a Plan of Compromise or Arrangement will be prepared for submission to the interested parties and the Court for approval. The Order also provided that up to $500,000 of Debtor in Possession financing can be advanced to the company during the time period of the initial order.
The Canmine Board of Directors (the "Board") remains fully intact and the Board has expressed its complete support for management's recommendation that a transparent and orderly reorganization under the CCAA process be conducted. Edward L. Ellwood, President and CEO states: "We will endeavour to maximize the position of all stakeholders in our restructuring plan under the CCAA. It is impossible to predict the final details that will be presented for various stakeholder approval, or to predict the actions that may arise. Nevertheless, we will work to do our best on behalf of all stakeholders and hope to garner your support through this process."
PricewaterhouseCoopers Inc., London, Ontario, has been appointed Monitor of the CCAA proceedings. An additional financial advisor may also be retained to advise on industry related matters, to provide input on a revised corporate structure, or potentially to source a strategic partner.
The Canmine Refinery has been substantially modified over the past year and has successfully passed through the commissioning and pre-start optimization phases. About two weeks ago, the refinery reached a point in the ramp-up process where all systems and tanks were fully charged with product inventory and the first batch of good quality product was produced. To continue this production however, the company will require adequate working capital to finance the ongoing operations. A decision was therefore made to place the refinery on temporary care and maintenance while the CCAA restructuring is conducted and working capital availability is determined under that process.
To date, Canmine has invested $14.5 million, including acquisition costs, to upgrade the Canmine Refinery which was originally built in 1995 at an estimated cost of $30 million. The Canmine Refinery employs pressure acid-leach, solvent extraction, and Merrill-Crowe precipitation to produce cobalt and nickel chemical compounds along with copper, silver and other metal by-products. The company also owns an inventory of cobalt-silver feedstock for the refinery, a cobalt deposit in north-western Ontario, a nickel deposit in Manitoba, and a nickel exploration project north-east of Thompson, Manitoba.
On Behalf of the Board, Edward L. Ellwood, MBA, President
TEL: (519) 858-4000 Canmine Resources Corporation
Edward L. Ellwood, MBA, President
Internet: www.canmine.com