Veris Gold Canadian sale order recognized by U.S. bankruptcy court

By Caroline Salls

Pittsburgh, June 4 – Veris Gold Corp.’s Canadian asset sale order was recognized and enforced Thursday by the U.S. Bankruptcy Court for the District of Nevada.

WBVG, LLC was the purchaser under the Canadian asset sale order.

The purchase price includes payment of Veris’ portion of closing costs and Nevada transfer taxes, plus cure costs and up to $1.8 million in priority charges. WBVG will also assume specified liabilities.

WBVG is wholly owned by Veris debtor-in-possession lender WBOX 2014-1 LLC. However, the company said WBOX 2014-1 will sell a majority interest in WBVG at closing to 2176423 Ontario Ltd., a company wholly owned by Eric Sprott. Sprott holds a royalty against the Veris debtors, and one of his wholly owned entities holds more than 20% of the equity in the Veris debtors, according to Thursday’s order.

Veris, a Vancouver, B.C.-based gold production company, filed Chapter 15 bankruptcy on June 9, 2014 under case number 14-51015.

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