Tergeo Minéraux Critiques Inc., Alliance Magnésium Métallurgie Inc., Alliance Magnésium Inc. and Alliance Magnésium Mines Inc., CCAA

Tergeo Minéraux Critiques Inc., Alliance Magnésium Métallurgie Inc., Alliance Magnésium Inc. and Alliance Magnésium Mines Inc. (collectively, “Tergeo”), Montreal, Quebec-based mining companies that specialize in the transformation and production of clean critical minerals based on a new technology, as well as extracting and processing precious raw minerals contained in serpentine mine tailings from stands accumulated over decades by the chrysotile industry, obtained CCAA protection on November 10, in a creditor-led filing initiated by Investissement Québec (“IQ”). Tergeo had initially been placed under interim receivership on September 20, in the context of an NOI filed by the company under the BIA. The insolvency proceedings were initiated due to its significant liabilities ($288 million, of which $101.1 million is secured), the company running out of liquidity, and the inability to finance the next stage of its project, for which $1.7 billion in financing is required. Raymond Chabot was appointed super monitor, replacing PwC as interim receiver. The super monitor will be acting on on behalf of Tergeo in a process financed by IQ as DIP lender to stabilize the environmental situation, implement a care & maintenance program, and determine next steps for the restructuring and rehabilitation of the assets and/or business. Counsel is Norton Rose Fulbright for IQ, Fasken for Raymond Chabot as super monitor, McCarthy for Tergeo, Osler for Wilmington Trust, BLG for Giampaolo Group, and Lavery for National Bank.

By: Dina Milivojevic