PERTH (miningweekly.com) – The creditors of Canadian firm Yukon Zinc Corporation have been told by the British Columbia Supreme Court to consider a restructuring proposal of the company at a meeting on September 2.
The implementation of the restructuring proposal would be subject to 51% of the creditors, holding 66.7% of the credit, voting in favour of the restructuring, as well as on Yukon Zinc implementing an agreement with its parent company to fund the implementation of the restructure.
ASX-listed MinQuest was hoping that Yukon Zinc’s creditors would fail to support the restructuring proposal, allowing the company’s proposed acquisition of the Wolverine zinc mine to proceed.
A court-appointed monitor of Yukon Zinc has already recommended that the asset purchase agreement be executed with MinQuest and has advised the Australian company that, as of August 14, no funding for Yukon Zinc’s restructuring had been finalised.
MinQuest had put forward a proposal to acquire the Wolverine project for C$15-million, with an additional C$3-million payment to be made to the government of the Yukon Territory to supplement an existing C$7.7-million environmental bond.