https://www.miningweekly.com

Troubled Mercator subsidiary looks to sell flagship asset

El Pilar, Mexico

El Pilar, Mexico

Photo by Mercator Minerals

10th October 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Vancouver-based Stingray Copper, a subsidiary of insolvent Mercator Minerals, announced this week that it would sell its El Pilar copper development project, located about 15 km south of the US border in Sonora, Mexico.

Stingray on Monday announced that it had started a sales process to sell El Pilar.

The company and its subsidiaries had negotiated a mutually acceptable forbearance arrangement and funding with their creditor, RMB Australia Holdings, to allow Stingray to complete the sale process.

Mercator filed for creditor protection in late August, with its Mercator Mineral Park Holdings unit filing for bankruptcy protection, listing debt of as much as $500-million. It listed assets of less than $50 000.

Stingray and its subsidiaries were not party to proceedings involving Mercator under the Bankruptcy and Insolvency Act.

Early last month, Mercator’s entire executive leadership team resigned from the company.

Russian billionaire Mikhail Prokhorov’s diversified Russian resource company Intergeo in December last year announced plans to buy Mercator in a reverse takeover that would have gained it exposure to the TSX.

However, Russian regulators delayed the transaction, prompting Intergeo to cancel the deal in July.

Mercator’s stock fell considerably last year from a high of C$0.63 to C$0.04 a share.

The El Pilar oxide copper project currently had a compliant proven and probable reserve of 1.73-billion pounds of copper and 2.23-billion pounds in the measured and indicated categories. It was expected to produce copper at $1.34/lb over its 13-year life.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 
Magni SA
Magni SA

Magni SA is committed to developing the safest Telehandlers available to our customers for underground and surface mining, construction, forestry,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.103 0.137s - 106pq - 2rq
Subscribe Now