Midway Gold Corp. announced on June 22 that it was filing voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. The announcement followed on the heels of a June 19 announcement that Midway had suspended mining activities at its Pan mine in Nevada. The company was continuing to leach ore that had previously been placed the Pan heap leach pad; however, the company said, the rate of recovery of gold was continuing to fall short of expectations.
Midway’s bankruptcy announcement said the company intended to restructure its business by attempting to sell noncore assets and resolving various challenges relating to the Pan mine. Midway will continue to operate its business as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.
Midway and its lenders have negotiated terms allowing for the consensual use of the company’s cash to maintain business-as-usual operations during the restructuring process. The company believes its current and anticipated cash resources will be sufficient to pay its ongoing expenses and maintain its business operations during the pendency of its Chapter 11 cases.
Midway poured the first gold at the open-pit, heap-leach Pan project in late March (E&MJ, May 2015, p. 8). The property is Midway’s first producing mine.