Losses mount for Curragh

Struggling Curragh (TSE) reported a net loss of $29.9 million for the second quarter.

The company attributes the situation to the decision in April to cease production at its lead-zinc-silver mine in Faro, Y.T. Another factor was the liquidation of inventories of concentrates during a period of declining zinc and lead prices and a weakening Canadian dollar.

Curragh is under court protection from creditors and is working out a restructuring plan. The protection period has been extended to Oct. 30. Deals on which the company is working include a $50-million sale of equity to two Korean companies (Korea Zinc and Samsung) and a $29-million financing package from the Yukon government for developing the remainder of the Grum deposit in the territory.

For the 6-month period ended June 30, the company recorded a net loss of $95.9 million, which includes a $25.4-million writedown of Westray mine assets and $12.5 million of foreign exchange translation losses. The company and two Westray Coal employees face charges stemming from an explosion at the coal mine in Nova Scotia in May, 1992, in which 26 miners died.

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