Following efforts by the Provincial Government and a court appointed monitor, a new buyer has been confirmed for Canada Fluorspar (NL) Inc. (CFI) and its fluorspar mine in St. Lawrence.
The Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, was joined in St. Lawrence for the announcement today by Rudolph de Bruin, Director of Fluorspar Holdings Pte Ltd (the buyer); His Worship Kevin Pittman, Mayor of St. Lawrence; and Paul Pike, Parliamentary Assistant to the Premier and MHA for Burin-Grand Bank.
On June 6, 2023, the Supreme Court of Newfoundland and Labrador approved the sale of CFI to the buyer, a private company registered in Singapore, for $25 million, which closed today (June 13, 2023). The buyer is a subsidiary company of AMED Funds. AMED Funds is a group of private equity funds with over US$1.4 billion in assets under management, including significant fluorspar investments and projects. AMED Fund’s team is composed of experienced professionals in the mining and exploration industry with an impressive track record and network of partners.
With the sale in place, the new operator can now engage with employees, contractors, and suppliers over the coming months to restart the idled mine. As a sponsor partner of AMED Funds and the buyer, Mr. de Bruin brings decades of mining experience to CFI.
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. Fluorspar is integral to lithium batteries, solar panels and steel. Prior to its closure in February 2022, the mine produced acidspar grade fluorspar and shipped its product year-round to global customers in Canada, the United States, Europe and Asia.
The Provincial Government will receive close to $4 million from the proceeds of the sale. This will repay a loan of $3.25 million, plus interest, that it provided to CFI to sustain its operations during the sales and investment solicitation process that was led by Grant Thornton under the CCAA proceedings in its capacity as the Court-appointed Monitor. The Provincial Government agreed with the buyer to provide up to, but not more than, $3.785 million toward the costs associated with a water treatment management plan at the site to assist with the restart of the mine. This project is expected to reach into the tens of millions of dollars in expenditures. These funds will help ensure the restart of the mine and the return of jobs and economic activity to the region.
The Provincial Government expresses its gratitude to the Monitor, Grant Thornton, for successfully leading the solicitation and sale process to this point, and for providing stewardship to CFI for the last 15 months.
Quotes
“Our government committed to exploring all reasonable options to help secure a future for the fluorspar mine and its employees. We are pleased that the mine has found a new owner. We look forward to the restart of the mine in St. Lawrence, and to the benefits and jobs that this will bring back to the town and to the broader region in the Burin Peninsula.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology
“We at AMED Funds are delighted that after months of detailed work by our technical teams, constructive engagements with the Province of Newfoundland and Labrador and with the Monitor, the transaction was realized. Our aim is not only to bring Canada Fluorspar back into production, but to transform it into a world class fluorspar mine as part of AMED’s diverse product offering. We aim to do this in partnership with the Province of Newfoundland and Labrador and the community.”
Rudolph de Bruin, Director
Fluorspar Holdings Pte Ltd.
“This is a very positive step for our community moving forward. The mining industry has been a part of our history for a long time and we wait, optimistically, to see what the parameters are around the sale and what it means for future employment. At this point there’s a positive outlook and, and we are very happy about the completion of the sale process.”
His Worship Kevin Pittman
Mayor of the Town of St. Lawrence
“This is an exciting development for the community of St. Lawrence, and as the MHA for Burin – Grand Bank I am proud to be a part of a government that responsibly helped support the restart of the fluorspar mine. This is a good day for the entire region, providing employment, creating a stable local economy, and benefitting all Newfoundlanders and Labradorians.”
Paul Pike
Parliamentary Assistant to the Premier and MHA for Burin-Grand Bank
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