Maple Minerals Corp - would someone happen to know the latest on the Caribou Mine

As you know, Maple Minerals Corp is a private company owned mainly by Finskiy, but with partial ownership by Scola and Peggy also. They have been trying to purchase the zinc-lead-silver Caribou mine in NB (out of bankruptcy).

Maple Minerals Corp purchased the mining equipment for $3M. They essentially used Peggy`s approach of securing undervalued assets (Peggy used a similar approach in purchasing the San Juan Mine). By Maple Minerals purchasing the mining equipment, it allow them to control the situation, which subsequently allowed them to negotiate a nice $1.25M price for the Caribou mine. Thus, Maple Minerals was able to negotiate a total price of just $4.25M for everything (mine and mining equipment). I think they were also trying to negotiate some financial assistance from the NB government to help out with the restart, due to the potential of the mine to employ 250 people.

A price tag of $4.25M (plus restart cost) is probably not too bad, as the previous operator invested $150M in the Caribou mine operation.

However, as of March 30, 2010, the deal was at risk of falling apart. Two other parties were granted a total of 30% claims on the mine (just the mine and not the mining equipment). It is completely understandable that Maple Minerals Corp is interested only if they can own 100% of the operation.

I can`t find any latest info on the situation. I have no idea of the current status.

If Maple Minerals decide to move on then they can remove the mining equipment (they own the equipment). I think most of the equipment should only be a few years old (should be in good shape). Perhaps Maple Minerals can sell some of the equipment to Century. We will likely need more equipment once we get into long-hole stope mining of the Bedard dyke and once we start mining the North Wall zone. Also, I`m sure better equipment can also be used in Peru, to enable greater efficiency. Although, Caribou was last mined as an open pit mine (Maple Minerals intend to mine strictly the underground this time). As such, Century may not be able to use all of this equipment. However, Finskiy also has his own private gold mining company in Russia, which I think should be producing about 40,000 ounces right now but he plans on increasing production to 225,000 - 255,000 ounces by about 2013. I`m sure he can use mining equipment for the growth of his private Russian gold producer also (which has numerous different property/mine locations).

Here is the article from March 30, 2010:

Mining: Maple Minerals Corp. must decide whether to share Caribou Mine venture with two other firms, which have 30% stake in the zinc-lead mine, monitor says

The fate of a closed Bathurst-area mine has become unclear due to two court rulings that change the game for Maple Minerals Corp., the company interested in running the mine.

Enlarge Photo Bob Smith Bob Smith, the PricewaterhouseCoopers LLP monitor handling the receivership of Blue Note Caribou Mines Inc., said a judge recently ruled that two other firms have a stake in the zinc-lead Caribou Mine.

After a court hearing in January in which Smith asked for direction on two issues, Justice Réginald Léger of the Bathurst Court of Queen's Bench ruled recently that Fern Trust, an offshore entity, has a 10 per cent net profits interest on the Caribou Mine that it has maintained since 1991.

Breakwater Resources Ltd. (TSX:BWR), through its subsidiary CanZinco Ltd., sold the mine to Blue Note Caribou in 2006, and still has a 20 per cent joint venture interest in the facility, Léger ruled.

Smith said the various parties are formulating their positions and he expects to be back in court some time soon.

"Now we wait and the lawyers continue to exchange courteous comments back and forth to try to figure out, 'What now?'

"As we're doing that, the mine continues to flood. Water continues to roll into the mine, especially now that it's spring, so we have a very limited period of weeks to move on."

He said the situation creates uncertainly for Maple Minerals, which needs to decide whether it will take the mine equipment and move it elsewhere, or try to make a go of the flooded mine.

"Maple Minerals does not wish to give 20 per cent joint venture interest to Breakwater. They want to own, if they can, 100 per cent," Smith said.

Smith said he needs to know if Maple Minerals is prepared to proceed with operating the mine.

"That's a decision they have to make. Because if they're not, they get to take their above-ground equipment and go, or some other alternative we have yet to figure out."

Last fall, Maple Minerals completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines, the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed in the fall of 2008.

Blue Note went into receivership last February and declared bankruptcy in July.

Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and but has since then been working with the court to work out the details of a $1.25-million purchase of the mines, land, buildings and other assets. The company had previously said it would like to operate the mine, employing as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.

Maple Minerals declined comment when reached by the Telegraph-Journal.