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MinQuest Ltd. (ASX:MNQ) has had to backtrack on its plan to buy the Yukon-based Wolverine zinc mine from. However, it plans to continue “vigorously” looking at ways to use the infrastructure at Wolverine.
Mining Weekly reported that MinQuest Ltd. (ASX:MNQ) has had to backtrack on its plan to buy the Yukon-based Wolverine zinc mine from. However, it plans to continue “vigorously” looking at ways to use the infrastructure at Wolverine to process material from its Fyre Lake copper project.
Wolverine was placed on care and maintenance this past January after Yukon Zinc Corp., its owner, ran into financial difficulties.
As quoted in the market news:
MinQuest in July announced its intention to acquire the mine, with plans to use the existing processing and tailings management facilities at the mine to fast-track the development of the Fyre Lake copper project.
Although it was selected as the preferred bidder for the mine, the Supreme Court of British Columbia in September adjourned MinQuest’s application to buy the mine, pending a restructure of Yukon Zinc’s creditor plan.
By October, Yukon Zinc’s monitor had received the necessary funding to make the required payments to the affected creditors under the new restructuring plan, meaning that MinQuest would not be able to execute its planned asset acquisition agreement.
Instead, Yukon Zinc would keep the Wolverine mine on care and maintenance, pending a sustained improvement in zinc prices.
MinQuest on Tuesday said the company would continue with its efforts to gain access to the Wolverine infrastructure.