Curragh counting on Asian investors

Cash-strapped Curragh (TSE) says its future depends on a $50-million investment from foreign companies.

In a report submitted to an Ontario court earlier this month, Curragh said it is negotiating with a group of Asian companies interested in investing in the company. Korea Zinc, Curragh’s largest customer, has since confirmed that it is part of that group.

Curragh is also relying on a $29-million loan guarantee from the Yukon government to finance development of new ore at the Faro mine. During the first three months of the year, the lead-zinc miner lost $42.2 million ($1.31 per share) before taxes and extraordinary items. If a $23.9 provision for the complete writeoff of Curragh’s investment in the Westray coal mine is included, the loss soars to $66 million.

In April, Curragh received court protection from its creditors until the end of June under the Companies’ Creditors Arrangement Act. The company will present to the court, on June 2, a second report on the progress of its financial restructuring.