Embattled Veris Gold has secured bankruptcy protection in the U.S. just a month after the B.C. Supreme Court granted the mining company a creditor protection in Canada.
The U.S. courts granted the Vancouver-based company provisional relief on July 23, protecting its assets south of the border for the time being. Prior to the ruling, the company had a temporary restraining order from the U.S. bankruptcy courts preventing creditors from taking action against the company.
Veris’ primary asset, the Jerritt Canyon gold mine, is located in Nevada.
The company said it sought creditor protection after a December 2013 electrical fire at its Nevada operation resulted in unexpected shutdowns.
Since then, they’ve cited decreasing gold prices, higher production costs and demands for payment under loan agreements as contributing factors to its money flow problems.
In June, Veris board member Jay Schnyder resigned from his post while vice-president of investor relations Joanne Jobin also departed the company.
The company was delisted from the Toronto Stock Exchange in mid-July.
