North American Tungsten Corporation Ltd. is looking for buyers for its Cantung mine, which received creditor protection for $75 million of debt in June.
The company’s sales and investment solicitation process is outlined in a document submitted to the B.C. Supreme Court on July 14.
According to that document, the company will be accepting sales or investment proposals for the Cantung tungsten mine and the nearby Mactung deposit until September 30, and hopes to finalize a transaction by the end of November.
If more than one qualified bidder is found, an auction may be held in October.
The Cantung mine will stay operational until the end of October, thanks to a loan of up to $3 million from Callidus Capital Corporation. Between now and then, the company plans to sell off much of its equipment to reduce its debt to Callidus.
North American Tungsten has hired Alvarez & Marsal Securities to act as a financial advisor during the solicitation process. A&M Securities is an affiliate of Alvarez & Marsal Canada, the monitor overseeing North American Tungsten’s creditor protection.
But the monitor stated in a report that the retention of A&M Securities is not inappropriate because the company’s personnel “have the necessary corporate finance expertise and experience and the arrangement as proposed represents a cost effective and efficient approach in the circumstances.”
The monitor also approved North American Tungsten’s request for a stay of proceedings until Oct. 31, when the company hopes to have reached an agreement with a bidder.