Management of Princeton Mining (TSE) recently stated that the appointment of a receiver for its wholly owned subsidiary, Cassiar Mining, will not affect its other business activities.
The British Columbia provincial government recently announced that it will not lend the company an additional $13 million as part of a restructuring agreement. As a result, the government appointed a receiver and the mine is to be closed.
The provincial government holds a $25-million debenture with a fixed and floating charge over all the asbestos-related
assets of Cassiar.
As at Sept. 30, 1991, Cassiar had a working capital deficit of about $7 million and long-term debt totaling $26.3 million. The long-term debt position is essentially composed of the province’s original $20 million loan plus accrued interest. The province also guaranteed $5 million of the company’s $14-million demand loan with the Bank of Montreal. Details on the current status of Cassiar’s balance sheet could not be obtained although the working capital deficit is believed to have deteriorated further.
The fate of the town of Cassiar is unknown although the province plans to cover municipal costs for the time being.
Princeton noted that its Similco copper mine near Princeton, B.C., is unaffected by the Cassiar situation. The copper mine is currently producing about five million pounds of copper per month with little change expected through 1992.
Be the first to comment on "Business as usual for Princeton"