Court grants Tulsequah mine owners creditor protection

Two companiesthat hoped to putnorthern B.C.'s former Tulsequah mine back into productionwere granted protection from their creditorson Wednesday.

The B.C. Supreme Court gave Vancouver-based Redcorp Ventures and its wholly owned subsidiary Redfern Resources30 days to deal with their financial situation under the protection of the Companies' Creditors Arrangement Act.

Thecompanies have been struggling toacquire the financing and permits needed to mine thezinc, copper, lead, silver and gold deposit located 160 kilometres south ofAtlin, B.C.,in the Taku River watershed.

In December,construction work at the mine site was suspended indefinitely owing tofinancial uncertainty and risingbuilding costs.

In a news release Wednesday, the companies said they needed protection because they do not have the money to paycontractors, suppliers and vendors or makepayments on an $85-million loan.

Another Atlin-area mine, Adanac Molybdenum, was granted creditor protection in December. It was developing a molybdenum deposit north of the small community.