Breakwater Resources has reached a tentative deal with unionized workers at its Myra Falls mine in British Columbia, averting a strike at the operation, the two sides said on Monday.
The company also said it has assessed damage from a fire on a production hoist last week and should have replacement parts installed in about 10 days.
Workers at the mine served management with a strike motion last week and had planned to walk out on Tuesday if no deal was reached.
The two sides reached a deal Monday morning following last-minute negotiations, said Nick Layton, financial secretary at Local 3019 of the Canadian Auto Workers union, which represents the workers.
We're not walking off the job, he said.
In a statement, the company confirmed the agreement, and said the deal would be put to union members for ratification later this week.
However, production -- which stopped last week after the fire -- will remain on hold until the production hoist is repaired.
Myra Falls sold 68,361 tonnes of zinc concentrate and 23,500 tonnes of copper concentrate in 2008.
The company's shares were up 0.5 of a Canadian cent at 37 Canadian cents on the Toronto Stock Exchange on Monday.
($1=$1.06 Canadian) (Reporting by Cameron French; editing by Rob Wilson