In an effort to explore a future for Canada Fluorspar Inc. (CFI) and its employees, the Provincial Government and Bridging Finance Inc. are to provide funds by way of a financing agreement to allow the monitor of CFI to find a new buyer, or restructure of the mine.
Through this process, a cash flow of $6.5 million is required to keep the mine in a care and maintenance mode for up to an estimated 20 weeks. The Province is contributing up to $3.25 million to a Debtor-in-Possession (DIP) loan, to be used to support a proposed sales and investment solicitation process (SISP).
The fluorspar mine in St. Lawrence is the only mine of its kind in North America. The mine is a significant employer in the region and an economic generator for the province. The mineral fluorspar is integral to items such as aluminum, lithium batteries, solar panels and steel. Prior to the receivership, CFI produced acidspar grade fluorspar and shipped its product year-round to global customers in the United States, Canada, Europe and Asia.
CFI was originally approved for a $17 million loan in 2011. As the company did not proceed with re-activation at the time, any funding drawn was remunerated to government. In 2017, the company was re-approved for a $17 million repayable loan to assist it with the re-activation of the St. Lawrence mine. On November 29, 2021, the Provincial Government approved an extension to the maturity date of the loan to December 31, 2022. In the case of bankruptcy or default of the $17 million loan, the province has a second security interest position over the company’s assets.
Quotes
“Our government is committed to exploring all reasonable options to help secure a future for the fluorspar mine and its employees, including participating in this process as the mine stays in care and maintenance mode. We remain optimistic that a new owner can be found for the mine and that all employees can return to work.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
“The St. Lawrence fluorspar mine is a viable opportunity, and we believe there are potential investors out there that will step up. There are a number of steps in this process, and we ask for patience as we work to find a favourable solution. I know how important this is for our area, and we continue to focus on the employees and their families, as well as anyone else in the region who relies on the mine for their livelihood.”
Paul Pike
MHA for Burin-Grand Bank
– 30 –
Learn mor
Follow us on Twitter @GovNL and @IET_GovNL
Like us on Facebook
Media contact
Kelly-Anne Roberts
Industry, Energy and Technology
709-729-5248, 327-7005
kelly-anneroberts@gov.nl.ca