Mining

Magna Gold Corp

Magna Gold Corp., a reporting issuer headquartered in Toronto, Ontario which operates a Mexico-focused mineral resource company engaged in the acquisition, exploration, development and operation of mineral properties, filed a NOI on March 3. The company's indirect subsidiary - Molimentales del Noroeste S.A. de C.V. – also filed an application for restructuring and provisional creditor protection before the Second District Court for Insolvency Matters located in Mexico City, Mexico. Bennett Jones is counsel for the company. KSV is the Proposal Trustee, represented by Cassels. By Dina Milivojevic

Rambler Metals and Mining Canada Inc. and 1948565 Ontario Inc. (collectively, “Rambler Canada”)

Rambler Metals and Mining Canada Inc. and 1948565 Ontario Inc. (collectively, “Rambler Canada”), a copper and gold mining business located in Baie Verte, Newfoundland, obtained CCAA protection on February 27, 2023. In 2020, a combination of the COVID-19 pandemic and decreased copper prices adversely impacted the Rambler Canada’s mining operations. Through 2021, mining operations were vulnerable to limited ore reserves and the continuing effects of the COVID-19 pandemic. Rambler Canada had taken numerous steps to reduce costs and increase efficiencies. Despite these steps, Rambler Canada continued to experience liquidity challenges. Secured creditors are owed approximately US$36.05 million and unsecured creditors are owed approximately US$19.13 million as of January 31, 2023. For these and other reasons, Rambler Canada obtained a CCAA initial order. Grant Thornton Limited was appointed as Monitor. Stewart McKelvey is counsel for Rambler Canada and BLG is counsel for the Monitor. By Dina Milivojevic

Arehada Mining Limited

Arehada Mining Limited, an Ontario-incorporated company which operated as a development-stage enterprise engaged in the exploration, development, extraction and refining of base metals in Inner Mongolia, China, entered liquidation on February 10. Following a series of transactions and investments, the company's shareholders resolved that, once the company received funds owing to it pursuant to the transactions, it would distribute the funds to minority shareholders, following which the company would proceed with dissolution. Although approved by the shareholders, the wind-up and dissolution proceedings cannot be completed by the company as it did not receive the final installments payable for the sale of an investment. In addition, the company has not been able to reach the company's former CEO or any other contacts in China with whom the company had historically communicated to receive an update on the balance of the funds owing. Albert Gelman is the Liquidator. WeirFoulds is counsel for the company. By Dina Milivojevic

Forage M3 Drilling Services Inc.

Forage M3 Drilling Services Inc., a Hawkesbury, Ontario-based drilling firm in the mining industry, was placed into bankruptcy on December 9, 2022, on application by RBC, owed approximately $500,000. The company has further debt in the amount of approximately $3.7 million. Since about 2018, the company has been unable to manage drilling programs profitably, which resulted in the company being unable to satisfy its obligations for trade accounts payable, long-term loans and HST arrears. In 2021, the company ceased active drilling operations after a shareholder dispute arose as a result of the increasing losses and began self-liquidating drilling equipment and other supporting assets. MNP is the Bankruptcy Trustee. Soloway Wright is counsel for RBC and Vice & Hunger is counsel for Centre De Services A L’Emploi Prescott-Russel Inc. By Dina Milivojevic

Pure Gold Mining Inc. (TSXV:PGM)

Pure Gold Mining Inc. (TSXV:PGM), a British Columbia mining company whose principal business is the operation of a mine located in Red Lake, Ontario, obtained CCAA protection on October 31. The company has recently placed the mine on care and maintenance and significantly reduced its workforce from 285 to 54 employees. Notwithstanding steps taken by the company to significantly reduce costs and address operational inefficiencies, it was facing an imminent and significant liquidity crisis. Its current cash balance is approximately $260,000 and, as of September 30, 2022, its net working capital deficit was approximately $13 million, excluding current amounts owing on the company’s debt facilities with Sprott Private Resource Lending II. The company projects that it requires approximately $3 million to $4 million per month to keep the mine on care and maintenance and to fund the costs of the CCAA proceedings. Absent the filing, the company would not have had the liquidity required to fund its immediate operational needs, including payroll for employees critical to mine maintenance and preservation. KSV was appointed as monitor. Counsel is Blakes for the company, Fasken for the monitor, DLA Piper for Sprott and KND Complex Litigation for Linda Larouche. By Dina Milivojevic

Great Panther Mining Limited (TSX:GPR)

Great Panther Mining Limited (TSX:GPR), a precious metals producer focused on the operation of the Tucano Gold Mine in Brazil, filed an NOI on September 6, listing approximately $17.9 million in liabilities, including approximately $17.1 million to Asahi Refining Canada Limited. The following day, the company also filed a judicial reorganization proceeding in the Brazil. The filing was precipitated by, among other things, Inflationary pressures significantly impacting costs, operational challenges, the necessary acceleration of certain capital programs, and contractor mobilization delays because of equipment availability issues, all of which led the company to forecast that it would likely default on several material agreements. A&M is the proposal trustee. By Dina Milivojevic

Trevali Mining Corporation and Trevali Mining (New Brunswick) Ltd.

Trevali Mining Corporation and Trevali Mining (New Brunswick) Ltd., base-metals mining companies focused on the exploration, development, operation, and optimization of mining properties in Canada, Burkina Faso, and Namibia, obtained CCAA protection on August 19. Trevali has seen a drastic deterioration of its financial situation in 2022, including because of a tragic flooding event at its Perkoa Mine in Burkina Faso, which resulted in the loss of eight lives, and material challenges at the Caribou Mine in New Brunswick. Apart from the tragic loss of human life, the Perkoa Mine flood has significantly impacted Trevali's financial health in the second quarter of 2022, including, among other things, (1) the need to incur more than $25 million of direct and indirect costs related to dewatering efforts, infrastructure refurbishment, and construction linked to repairs and rehabilitation; and (2) the cessation of all operations at the Perkoa Mine for more than four months. In addition, the production performance at the Caribou Mine has been significantly impacted following continued operational issues due to low equipment availability and productivity rates with a mining contractor. FTI was appointed monitor. Counsel is Blakes for the companies, Dentons for the monitor, Fasken for BNS, McCarthy Tétrault for Glencore International AG et al., KND Complex Litigation for an ad hoc committee of shareholders, Koskie Glavin Gordon for the union at the Caribou Mine and Cassels for Trevali's directors. By Dina Milivojevic

Victory Nickel Inc

Victory Nickel Inc., an exploration and development mineral resources company primarily engaged in the acquisition, exploration, evaluation and development of nickel projects and associated products in Canada, was deemed to be bankrupt on July 26. On April 14, the company filed a proposal to restructure its debt under the BIA. A meeting of the Company's creditors was convened on May 5 and adjourned the same day to address concerns raised by the company's single largest unsecured creditor holding approximately 78% of the unsecured claims. The creditors' meeting was reconvened on July 26 proposal was not approved by the requisite majority of creditors. As a result, the company was automatically deemed to be bankrupt. The creditors appointed Farber as bankruptcy trustee. Cynthia Thomas, officer and director of the company and its subsidiaries, and Michael Anderson, director of the company have tendered their resignations. By Dina Milivojevic

Canadian Dehua International Mines Group Inc.

Canadian Dehua International Mines Group Inc., a British Columbia-based mining company, obtained protection under the CCAA on June 3. The company owns 100% of the shares of two mining projects and a service company, as well as partial ownership interests in several other mining projects. Various factors contributed to the company's CCAA filing, including: (a) delays in achieving commercial production beyond what was originally planned for certain projects, resulting in the assumption of significant debt and limited revenues; (b) two creditors, Zhonghe Canada Zhonghe Investment Ltd. and China Shougang International Trade & Engineer Corporation (“Shougang”), obtaining default judgements against the company in the approximate amounts of $5.2 million and $20.8 million respectively; and (c) the commencement of bankruptcy proceedings by Shougang seeking to obtain a bankruptcy order as against the company. FTI was appointed Monitor. Counsel is DLA Piper for the company. By Dina Milivojevic

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