Liberty Mines has suspended its Timmins operations due to a low nickel price and will move to a care and maintenance mode until base metals prices improve and production becomes economically viable.
“Clearly we are disappointed that market conditions and commodities prices have not kept pace with Liberty’s turnaround since the start of the year,” president and CEO Chris Stewart said in a news release. “Our decision to suspend production temporarily is not being taken lightly, but is ultimately in the best long-term interests of our investors and strategic partners. In the interim, we are making every effort to reduce costs and update our go-forward strategy.”
Liberty has also temporarily suspended its exploration diamond drilling activities until further notice. According to the release, this will help reduce short-term cash requirements.
The company’s primary shareholder, Jien International Investment Ltd. (JIIL) has provided $5 million in additional financial support to allow the company to continue as a going concern.
JIIL and Liberty are currently in negotiations to restructure outstanding debt owed to JIIL, with the goal of completion by Dec. 31, 2012.
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