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| Last updated at 9:16 AM on 03/06/08 |
Hurdles to overcome, says Burin Fluorspar Ltd. president 
BY PAUL HERRIDGE
The Southern Gazette
Nearly two decades after last shutting down, another attempt to reactivate the fluorspar mine in St. Lawrence is in the works.
A step in that direction was taken late last month when an Agreement in Principle was signed between British Columbia-based Rivera Capital Corp. and Burin Fluorspar Ltd., which owns the St. Lawrence mine, proposing to merge the two companies.
Richard Carl, president of Burin Fluorspar Ltd., confirmed the ultimate goal is to reopen the mine, and while he’s optimistic it might happen, he stressed there’s still much work to be done before that becomes a reality.
“We have a plan in place to restart the mine, but we’ve got a lot of hurdles that we’ve got to get over before that plan is executed.
“It’s our intentions to move forward, but between now and the day the first ton of ore is shipped out of (St. Lawrence) there are a lot of steps that need to be taken.”
The net result of a merger means Burin Fluorspar Ltd. would be publicly listed on the TSX (Toronto Stock Exchange) Venture Exchange. Before an amalgamation takes place, shareholders for both companies must first approve the transaction.
Prior to signing the agreement, Burin Fluorspar Ltd. raised $6.23 million to fund a drilling program, prepare a bankable feasibility study and complete other necessary work to determine whether or not reopening the mine is worthwhile.
HISTORY
The history of mining fluorspar in St. Lawrence dates back to 1933 when Alcan Aluminum Ltd. owned the operations.
In 1986, Minworth Limited took over, operating the mines until 1990 when the company went into receivership and ownership of the mining leases and other assets reverted back to the provincial government.
Burin Fluorspar Ltd. acquired the leases and assets in 1996 after government had issued a call for proposals two years prior. A merger with another company was first attempted in 1999, but proved unsuccessful – shareholders had apparently approved the transaction but other factors ultimately scuttled the plan.
During the lifespan of the mining operations in St. Lawrence, over 4.5 million tonnes of fluorspar have been produced.
Mr. Carl believes that’s a good sign.
“So, we know the reserves are there, or at least we think we know they’re there.
“We’ve got to prove that and then we’ve got to go prove to some new investors and lenders that this project is economically viable, and is worth someone putting up a substantially greater amount of money than $6 million to make it go.”
MARKET DEMAND
Fluorspar has three main types of industrial uses, depending on the grade of purity.
If all goes as planned, the company intends to produce acid grade quality fluorspar, used chiefly in the production of Hydrofluoric Acid, which can serve numerous industrial applications, including a role in the production of aluminum.
According to Mr. Carl, the market for fluorspar is much better today than even just two years ago, noting the industry was dealt a severe blow when CFCs (chlorofluorocarbons) were banned from aerosol cans back in the late 1980s.
“Essentially, one of the major components of fluorspar was pulled from the market, prices declined significantly and the market has been trying to recover for quite some time.
“It appears that, through a variety of other sources of demand, it has recovered. So, that’s the difference.”
MHAs REACT
Grand Bank MHA Darin King and Burin Peninsula West MHA Clyde Jackman both expressed enthusiasm with the recent announcement.
Mr. King suggested the announcement is significant for the St. Lawrence mine.
“Burin Fluorspar has raised significant capital in recent times as it attempts to reactivate the St. Lawrence mine, and this move to take the company public is yet another positive move.”
Mr. King indicated the increasing global demand for fluorspar has made the reactivation of the mine much more attractive and economical than it was in the past.
“Through my discussions with Mr. Carl I am told that the market conditions make the reactivation of the mine much more feasible today than it was for many years since its initial closure.”
Mr. Jackman voiced his optimism with this latest development, and looked forward to continued positive developments with the project.
“This project is showing movement that hasn’t been seen in sometime.
“If this reactivation becomes a reality the benefits will be tremendous for the entire Burin Peninsula, so I look forward to continuing to work with MHA King on this project.”
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03/06/08
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