Citing softening capital market conditions, Mercator Minerals officials have announced the acceleration of a strategic review of its Mineral Park mine.

Mercator’s board of directors’ special committee is in consultation with the full board, according to company representatives; BMO Capital Markets is serving as financial advisor through the process.

Alternatives include a sale, a merger and an asset sale or a strategic investment, according to D. Bruce McLeod, Mercator's CEO. "We are pleased to have the support of our lenders who recognize Mineral Park's value despite the near-term operating challenges," he said.

The impact of concessions “should allow Mineral Park to operate in this challenging environment, which will facilitate the review of strategic alternatives currently under way," he added.

Proposals have come from several parties, although company representatives declined further details; MPI credit lenders, meanwhile, have been facilitating a review, dating to Q2 2010 with a $86.8-million principal.

Resource Center Whitepapers, Videos, Case Studies

Let's stay in touch!

All of the latest mining news and our digital edition sent to your inbox once a week.

We'll never share your email address, and you can opt out at any time, we promise.