VANCOUVER — The continuing poor economic outlook has forced Redcorp Ventures to file for protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA). Protection was granted by the Supreme Court of British Columbia until April 3, 2009.
Redcorp and its subsidiary Redfern Resources are unable to meet current and future obligations to holders of its senior secured notes, notably to HSBC Bank Canada in respect to an $85 million loan. Redcorp also owes money to contractors, suppliers and vendors.
Construction and development at the Tulsequah Chief copper project near Atlin were suspended in mid-February. Rising pre-production capital costs forced the suspension. Between June 2008 and December 2008 capital costs rose from $332 million to $500 million.
Further information can be obtained at www.Redcorp-Ventures.com or by calling toll-free to Troy Winsor, manager of investor relations (888-225-9662) or Salina Landstad, manager of public relations (888-669-4775 ext 103).