Minera Tres Valles files for bankruptcy in Chile

By Mary-Katherine Stinson

Lexington, Ky., Dec. 12 – Three Valley Copper Corp. announced that its 95.1% indirectly owned subsidiary Minera Tres Valles has filed for bankruptcy with the Civil Courts of Santiago, according to a press release.

Under Chilean law, a liquidator is expected to be appointed by the larger creditors of Minera. The liquidator will assume full responsibility for operations and management.

Minera first scaled down operations in January 2022 while searching for a long-term financing solution. However, no solution has materialized nor are there any ongoing discussions with investors. Minera continued to harvest copper cathodes from its current inventory and, according to the press release, the company expects an accelerating decline in its liquidity position as the inventory is depleted. Together with the substantial funding requirements to carry out a restart of operations, Minera is unable to effectively carry on its business or meet its obligations.

Although Minera filed a judicial restructuring procedure on June 13, 2022, the order has not yet been granted by the Chilean courts and the company’s liquidity position has continued to deteriorate.

As a result, Minera has applied for voluntary liquidation with sufficient cash resources for the liquidator to manage the company for several months.

The majority of the company’s workforce was previously terminated and paid severance entitlement, leaving only employees dedicated to environmental compliance and maintenance.

Three Valley Copper Corp., which was previously called Sprott Resource Holdings Inc., is based out of Toronto. Minera Tres Valles is an operating mining complex located 300 kilometers northeast of Santiago, Chile in Region IV near the town of Salamanca.

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