Mineral Park Mine files $10M sale offer
Post Date: 16 Jan 2015 Viewed: 324
The bankrupt Mineral Park mine north of Kingman has asked a federal judge to approve a $10 million sale by Jan. 22, according to court records.
The proposed sale to Origin Mining Company – a company incorporated earlier this month in Arizona and affiliated with Nevada-based Elko Mining Group – comes just over two weeks after 383 mine workers learned they were laid off from their jobs.
Mineral Park Inc. filed a sale motion on Jan. 7, detailing the agreement reached with origin and requesting an expedited court hearing and decision to meet the January deadline before the company runs out of cash from its lenders.
“The only alternative to the proposed sale is abandonment of the mine…” the company wrote in the court filing. “The proposed agreement represents the highest and best offer currently available.”
The copper and molybdenum mine on Dec. 29 ceased all mining operating and transitioned into care and maintenance mode, relying on a skeleton crew to meet safety and environmental regulations.
The proposed sale would include the nearly 6,500-acre mine, some of Mineral Park’s equipment, an office in Golden Valley, the company’s records and all geological data of the mine.
Mohave County attorney Bill Ekstrom said on Monday he was analyzing the proposed sale and weighing the county’s option to respond to the proposed sale. The county has claimed the mine owes around $15 million in back taxes, but the mine has disputed the valuations determined by a state office.
Ekstrom said the county is still in “wait and see” mode on how the sale will impact the company’s tax debt.
“It depends on how much (money) there is…” Ekstrom said of the county’s chances of getting some of the owed taxes. “Given their financial situation there may not be a lot.” County supervisors are scheduled to discuss the tax situations in closed session Tuesday morning.
Interested parties have until later this week to file motions about the sale and a hearing will be held next week on the proposal.