Redcorp gets protection from creditors on Tulsequah polymetallic mine project

By @ibtimes on

One day after Vancouver junior explorer Redcorp Ventures (TSX:RDV) announced two key approvals for  the Tulsequah Mine project in British Columbia, the company announced it has successfully received protection from its creditors by order of the Supreme Court of British Columbia.

The court order granted initial protection Wednesday for a period of 30 days. Redcorp and its subsidiary Redfern Resources face repayment of a Cdn$85 million loan facility to HSBC Bank Canada and outstanding commitments to contractors, suppliers and vendors.

The proposed Tulsequah Chief Mine is located on the Tulsequah River near its intersection with the Taku River, and situated approximately 19 miles from where the Taku River crosses the US/Canada border. In December, construction work at the Tulsequah mine site was indefinitely suspended due to financial uncertainty and increased construction costs.

The responsible British Columbia ministries have approved an amendment to Redfern's Project Approval Certification to allow the project to use barges on the Taku River for access to the project, along with approval for necessary roads and infrastructure to connect the barges with the zinc, copper, lead, silver and gold mine.

Meanwhile Fisheries and Ocean Canada issued an authorization to allow Redfern to complete diversion for a small stream located just south of the mine.

These approvals are necessary to permit recommencement of construction once the necessary additional fund funding is identified and any refinancing and restructuring of corporate debt is completed.

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