Canada-headquartered Trevali Mining’s 90%-owned subsidiary Nantou Mining Burkina Faso has filed an software for liquidation with the Judicial Tribunal of Commerce in Burkina Faso.
Underneath relevant Burkinabe legislation, a liquidator is predicted to be appointed by the Judicial Tribunal within the coming days and this liquidator will assume accountability for the administration of the affairs of Nantou Mining.
Upon appointment, the liquidator will perform or train, as relevant, all acts, rights, and obligations of Nantou Mining, and will probably be required to carry out all acts needed for the preservation of Nantou Mining’s rights in opposition to its debtors and collectors.
Nantou Mining’s liquidity place has deteriorated considerably within the months following the flooding occasion that occurred at its Perkoa mine on April 16.
This, along with the substantial funding necessities to hold out a restart of operations and the continued geopolitical uncertainty in Burkina Faso, together with the coup d’état carried out on September 30, has resulted in Nantou Mining being unable to restart operations on the Perkoa mine presently, or to successfully keep on its enterprise or meet its obligations as they turn into due, Trevali says.
The Perkoa mine had been beforehand positioned into care and upkeep to protect the worth of the mineral useful resource and mine property and shield the atmosphere within the mine’s neighborhood, whereas Nantou Mining explored its obtainable choices, earlier than in the end figuring out that it was essential to proceed with the applying for liquidation.
Workers devoted to environmental compliance and basic upkeep actions on the mine website will proceed their work, however the majority of the about 350-person workforce was terminated and paid severance entitlements.
Funds stay on deposit in a segregated environmental reclamation fund administered by the federal government of Burkina Faso to assist future closure and reclamation work. Funds have additionally been positioned in belief to fund a monetary settlement with the households of the employees who died within the April flooding.
Following the appointment of a liquidator, additional info will probably be communicated to affected events in accordance with relevant laws.
CCAA PROCEEDINGS
Pursuant to the preliminary order below the Firms’ Collectors Association Act, Trevali obtained safety from its collectors for an preliminary interval of ten days and FTI Consulting Canada was appointed as monitor of the corporate.
The Supreme Courtroom of British Columbia issued an order in August approving an preliminary extension of the keep interval till October 6.
The Courtroom on October 6 issued an order for a second extension of the keep interval till October 18.
