TORONTO – Following the suspension of all mining and development at its Lockerby nickel mine near Sudbury, ON, First Nickel appears to be headed for receivership. One of the company's creditors, Resource Capital Fund V, has demanded immediate repayment of all outstanding obligations. Resource Capital has applied to have KSV Kofman appointed the receiver.
The application for the appointment of a receiver was held on Aug. 20 at the Ontario Superior Court of Justice (Commercial List).
First Nickel acquired the Lockerby mine from Falconbridge in 2005, and reopened it in September 2011. In 2014 the mine produced 13.32 million lb of contained nickel and 7.63 million lb of contained copper. Weak metals prices forced the company to delay further development in June 2015 and suspend all operations in July 2015.
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