Hillsborough has buyer in wings

By mid-June, beleagured Hillsborough Resources (HLB-T) expects that a potential buyer will have completed a due diligence review of the company and its coal mine on Vancouver Island, B.C.

In the meantime, Hillsborough has been granted extended court protection while negotiations with McMurray Oil of Wyoming continue. If the review is positive, Hillsborough plans to seek court approval for the transaction with McMurray Oil.

Hillsborough filed for court protection a year ago, resulting in the temporary closure of the Quinsam coal mine. The company’s problems were triggered by slumping coal prices, which in turn idled about 200 workers for a few months until the court granted the company protection from its creditors.

The mine currently produces about 20,000 tonnes of thermal coal per month for customers in North America, Japan and Chile.