North American Tungsten receives creditor protection, $75M in debt

North American Tungsten has been given court protection from its creditors.

The owner of the Cantung mine,located north of Watson Lake on the Yukon-Northwest Territoriesborder,says it has been given 30 days to restructure its finances by the B.C. Supreme Court.

North American Tungstenrepresentatives saytheycannot currently meet past obligations and ongoing financing costs, that the companyexpects to survive its current financial troubles.

Documents indicate North American Tungsten owes $75.5 million to more than 200 creditors.Those include about 25 creditors in Whitehorse, with Kal Tire owed the most, at more than $300,000.

Cantung announced temporary layoffs for 80 mine employees more than a week ago.

Mining operations have been shut down, but the mill is still running.The company says low tungsten prices, operational issues and a lack of cash led to the layoffs.