North American Tungsten receives creditor protection, $75M in debt
Company says it expects to survive $75M debt troubles
North American Tungsten has been given court protection from its creditors.
The owner of the Cantung mine, located north of Watson Lake on the Yukon-Northwest Territories border, says it has been given 30 days to restructure its finances by the B.C. Supreme Court.
North American Tungsten representatives say they cannot currently meet past obligations and ongoing financing costs, that the company expects to survive its current financial troubles.
Documents indicate North American Tungsten owes $75.5 million to more than 200 creditors. Those include about 25 creditors in Whitehorse, with Kal Tire owed the most, at more than $300,000.
Mining operations have been shut down, but the mill is still running. The company says low tungsten prices, operational issues and a lack of cash led to the layoffs.