Toronto-based Muscocho Explorations (TSE) and Flanagan McAdam Resources (TSE) have both filed a plan of arrangement under the Companies’ Creditors Arrangement Act, following orders from the Ontario Court. Both companies say the plan reflects their best efforts to satisfy secured creditors while maximizing recovery for all other creditors. If Hemlo Gold Mines (TSE) acts on a letter of intent to purchase the mill, related surface infrastructure and surface rights at the Magnacon gold mine near Wawa, Ont., the sister companies will receive a total of $9 million. Muscocho holds a 25% interest in the mine, while Flanagan owns a 50% stake.
The debt-ridden companies say they will use the proceeds of the sale to fund the plan of arrangement. Creditors meetings will be held on Dec. 13.
Muscocho has placed the Magnacon joint venture property on a care-and-maintenance basis in order to reduce ongoing costs.
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