AMED Funds to Reopen St. Lawrence Fluorspar Mine After Acquisition by Year-End

South Africa: The St Lawrence Fluorspar mine, which was previously insolvent, has been acquired by African Minerals Exploration and Development Funds (AMED Funds), a Luxembourg-based company. The purchase was made through a newly created subsidiary named Fluorspar Holdings for C$25 million from Canada Fluorspar, the former operator of the mine. The sale was approved by the Newfoundland and Labrador Supreme Court after a 15-month insolvency process, leading to the announcement of the acquisition in St Lawrence earlier this week. Now, with the sale completed, the new owners will begin discussions with employees, contractors, and suppliers to reopen the mine before the end of the year.

Canada Fluorspar, which operated the St. Lawrence mine, has stated that it plans to reopen the mine by November of this year. The mine was a crucial economic force in the province before its closure in early 2022, producing acidspar-grade Fluorspar, an essential material to produce lithium batteries, solar panels, and steel. AMED, the company behind the reopening effort, aims to not only revive Canada Fluorspar but also transform it into a world-class Fluorspar mine as part of its diverse product offerings. The company has announced a gradual reopening of the mine, in collaboration with the provincial government and the local community.

The buyer and the provincial government have reached an agreement wherein the government will provide up to C$3.785-million towards the water treatment management plan at the mine site. This move is expected to cost tens of millions of dollars and will greatly assist in the restart of the mine. The funding will help bring back jobs and economic activity to the region. Additionally, the provincial government will receive nearly C$4-million from the sale proceeds, which will be used to repay a loan of C$3.25-million along with interest that it had provided to Canada Fluorspar to keep their operations running during the sales and investment solicitation process led by Grant Thornton under the Companies' Creditors Arrangement Act proceedings as the court-appointed Monitor.

After months of careful review and negotiations with various stakeholders, the sale has finally closed. The parties involved worked tirelessly to ensure an ideal outcome for all stakeholders, including senior lenders, DIP lenders, the company represented by the court-appointed Monitor, and most importantly, the local community and province. The Monitor's court filings reveal that the AMED proposal was significantly superior to other proposals received. Express gratitude to everyone and their representatives who dedicated their diligent and constructive work towards successfully closing this transaction.

Canada Fluorspar is set to benefit from the technical expertise in Fluorspar and robust sales and distribution network of AMED. Known for its successful identification, acquisition, and operation of diverse mining projects over the last decade, AMED boasts an impressive asset management portfolio of $1.4 billion, featuring a noteworthy investment in a Fluorspar operation based in South Africa along with several other Fluorspar projects.

The government is committed to exploring all reasonable options to secure the future of the Fluorspar mine and its employees. It's good news that the mine has found a new owner, and we eagerly await the reopening of the mine in St. Lawrence. This will not only bring back jobs to the town but also provide benefits to the broader region in the Burin Peninsula.