June 28, 2017
Another Important Milestone Reached in Effort to Restart Wabush Mine
The Honourable Siobhan Coady, Minister of Natural Resources, is acknowledging that another important milestone has taken place concerning ongoing efforts to restart Wabush Mines. With approval granted under the Companies' Creditors Arrangement Act yesterday in Montreal, Tacora Resources Inc. has now been approved to purchase the assets of Wabush Mines, including the assignment of contracts.
On June 13, 2017, Tacora Resources Inc. signed an Asset Purchase Agreement, within the Companies’ Creditors Arrangement Act process, for Wabush Mines. Cliffs Natural Resources, through its subsidiary, holds responsibility and associated financial risk for environmental rehabilitation. This liability will be assumed by Tacora upon close of the purchase agreement.
The purchase agreement that was approved by the Court outlines the actions and responsibilities required of Tacora Resources Inc., including the requirement of financial assurance for environmental rehabilitation. Assuring environmental accountability for the site remained the responsibility of the purchaser was a key aspect of the agreement for the provincial government as it safeguards taxpayers from being burdened with future environmental cleanup liabilities.
Tacora plans to complete a feasibility study in 2017 after which Tacora will seek to raise additional capital needed to re-start Wabush Mines.
“This week’s announcement is another important milestone in the efforts to restart Wabush Mines. While a great deal of work yet remains to ensure Wabush Mines is successfully reopened, approval of the agreement between Cliffs and Tacora takes us one step closer. The Department of Natural Resources team and I have worked diligently over the past 18 months to both encourage the reopening of Wabush Mines while also ensuring that we safeguard taxpayers from any remaining environmental liabilities.”
Honourable Siobhan Coady
Minister of Natural Resources
“This is positive news and a tremendous step forward for Wabush. Revitalizing the asset of Wabush Mines has been the goal since Cliffs pulled out. I look forward to working with Tacora through the next steps and continue to support the Provincial Government who have been diligent in leading this process. Labrador's mining deposits are among the best in the world, and I am committed to securing the greatest possible opportunities for Labradorians.”
Member of Parliament for Labrador
“We have been working persistently to support the successful sale of Wabush Mines. I am hopeful, after the decision under the CCAA process this week, that one day Wabush mines will successfully restart. I will continue to support the people of Wabush and Labrador West to ensure they receive the maximum benefits from the re-start of the mine."
MHA for Labrador West
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The Companies' Creditors Arrangement Act decision is available online at: cfcanada.fticonsulting.com/bloomlake/courtOrders.htm .
Yvonne Jones, MP for Labrador
Constituency Assistant to
MHA for Labrador West
2017 06 28 12:35 p.m.