Engineering & Mining Journal

DEC 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 13 of 115

REGIONAL NEWS - U.S. & CANADA 12 E&MJ • DECEMBER 2018 Tacora Resources Completes Scully Mine Restart Financing Tacora Resources Inc. announced on No- vember 27 it has closed on the funding required to restart the Scully mine in Wabush, Newfoundland, and Labrador, Canada. This includes US$212 million in private equity and senior secured debt financing, together with existing commit- ments for up to US$64 million in mining equipment debt financing. Mining resumed and construction be- gan in November. Ramp up is expected in the second quarter of 2019 to 2021. The mine also plans to hire about 280 employees, expected to come from the Labrador West region, the company said. Tacora purchased all the assets associ- ated with the Scully mine in July 2017. Tacora then completed a feasibility study that confirmed the viability of its restart plans for the mine, secured life of mine access to rail transportation services and ship loading infrastructure, including ac- cess to a deepwater ports at Pointe Noire and Sept-Iles, and concluded various regu- latory matters with the government of New- foundland and Labrador, including consul- tations with local indigenous peoples. "We are extremely pleased to have the Scully mine restart fully financed and to move forward with hiring the workforce and implementing the various commercial con- tracts and capital projects to bring the Scul- ly mine back to life," said Larry Lehtinen, executive chairman and CEO of Tacora. Tacora negotiated a 100% offtake contract through 2033 with Cargill, one of the largest traders of iron ore in the world, the company said. Lee Kirk, managing director of Cargill's Metals business, said, "By extending this agreement through 2033, Cargill is bet- ter positioned to provide our customers around the world with greater access to high-quality iron ore." Bunker Hill Works Out Lease Arrangement After reaching an agreement with the prop- erty owner, Bunker Hill Mining has rein- stated the lease on the Bunker Hill mine. "We are very pleased to have worked out an agreement with the mine owner, Placer Min- ing Corp., to enable us to continue our effort to ultimately reopen the mine and make it a productive asset," said John Ryan, inter- im CEO. "I believe the discussions we have had over the last several weeks have unified our common goal to continue to advance the project toward production." The company also achieved a substan- tial reduction of its monthly lease pay- ments spanning the next 12 months. In addition, if the company achieves certain agreed goals on its work program at the mine, the payment concessions can be extended an additional six months. The monthly payments will be $60,000 per month for the next 12 months, a reduction of 70% from the previous amount of $200,000. The re- duction in payments will be made up for by adding the accumulated reduc- tion to the purchase price of the mine should the company choose to exercise its purchase option. The company is also in discussions with the United States Environmental Protection Agency (EPA) over payment obligations Bunker Hill owes. In other company news, Howard Crosby announced his resignation from the board. It appointed John Liu as a director. Liu has more than 25 years of experience in private equity investment, consulting and business management. He is a partner at Valuestone Advisors Ltd. He was previous- ly an advisor to Jiangxi Copper Corp. Highland Receives Wetland Permit for Copperwood Highland Copper Co. Inc. announced that its Michigan subsidiary, Copperwood Resources Inc., has received the amend- ed wetland, lakes and streams permit from the Michigan Department of En- vironmental Quality Water Resources Division (MDEQ) for its Copperwood pro- ject located in the Upper Peninsula, Michigan, USA. "The receipt of the wetlands permit is a significant milestone in obtaining all permits required for the development of the Copperwood project," said Denis Miville-Deschênes, president and CEO of Highland Copper. "I want to take the opportunity to thank all stakeholders and employees involved in the process that has led to the receipt of this import- ant permit." Following the release of the updat- ed feasibility study on the Copperwood project on June 15, the company moved Tacora will breathe new life into an idled iron ore mining operation in Wabush, Newfoundland.

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