North

Wolverine Mine creditors to vote on Yukon Zinc's debt repayment plan

Operators of the cash-strapped Wolverine Mine are in Whitehorse to talk to creditors and have them vote on a debt repayment proposal.

Some Yukon businesses are being offered just seven cents on the dollars by the mining company

Yukon Zinc owes more than $646 million to hundreds of creditors. Most of that debt — about $600 million — is claimed by its parent company, JinDui Cheng Canada Resource Corporation Limited. (yukonzinc.com)

Operators of the cash-strapped Wolverine Mine are in Whitehorse to talk to creditors about their debt repayment proposal.

Yukon Zinc is under court protection as it reorganizes its finances. The company, which claims debts approaching $650 million, is hosting an open house on Monday afternoon for creditors to ask questions about the pay out plan.

Dozens of Yukon businesses are owed about $4 million altogether. 

Yukon Zinc is offering to pay out debts under $5,000 and pay $5,000 to businesses owed less than $9,000. Creditors owed more than that are being offered just seven to 12 cents on the dollar.

Creditors vote Wednesday

Creditors will vote Sept. 2 on whether to accept the company's offer. If rejected, an Australian company has offered to buy Wolverine Mine. MiniQuest owns a nearby copper-gold property and wants to used the mill at Wolverine to process its ore.

When Wolverine went into full production in March of 2013, there were more than 300 people working at the mine. It temporarily laid off about 100 workers several months later because of low metal prices but recalled some of those workers September 2013. The mine shut down in January 2015 and was granted creditor in March.

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