After filing for protection under Chapter 11 of the U.S. bankruptcy code, Bunker Hill Mining (TSE) has ceased operations at its underground zinc-lead-silver mine near Kellogg, Idaho. The company laid off 60 employees in January and had expected to continue operating while it sought funding to cover its working capital deficit.
This latest move will result in a layoff of about 150 additional people, leaving 10 on site to keep the mine on acare-and-maintenance basis while funding is sought.
The company is continuing negotiations with private investors for an immediate cash infusion of working capital. In addition, Bunker Hill is discussing possible financing with a European institution for the funding of a modernization-expansion program of mining and milling operations.
Bunker Hill previously indicated it needed in the order of US$10 million, principally to modernize the mining operation so bulk mining methods could be utilized to bringdown production costs.
At last report, Sept. 30, 1990, the company had a working capital deficit of US$3.7 million and notes payable totalling US$1.9 million.
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