Mineral Park to sell mining assets to Origin Mining for $10 million

By Kali Hays

New York, Jan. 8 – Mineral Park, Inc. asked for court authorization of a private sale for its assets and those of its affiliate, Bluefish Energy Corp., to Origin Mining Co., LLC for a purchase amount of $10 million, according to a Wednesday motion for the U.S. Bankruptcy Court for the District of Delaware.

Assets included in the sale are Mineral Park’s mine and associated equipment, Bluefish’s electricity generator and some environmental reclamation obligations, which will lead Origin to reimburse Mineral Park for about $3.5 million of pledged cash collateral.

Since filing for bankruptcy, Mineral Park said it has been “forced” to place the mine in care and maintenance status and that the proposed sale is the only other option beyond “abandonment of the mine.”

A four-month marketing process for the assets resulted in no other acceptable bids, according to the motion.

The sale is expected to close no later than Jan. 23, which is also the date through which Mineral Park will have access to cash collateral.

Considering this, the company asked that the court consider the sale on an expedited basis so as to enter approval no later than Jan. 22.

Mineral Park is a subsidiary of Vancouver, B.C.-based copper mining company Mercator Minerals Ltd. The company filed for bankruptcy on Aug. 25 under Chapter 11 case number 14-11996.

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