Updated - August 20th, 2015 11:40am: Reports are this morning that employees of Lockerby Mine were turned away at the gate this morning and told by security that the mine was closed.
First nickel issued layoff notices in June reducing it's permanent employees by approximately 30% and reduced it's contractors by 75%.
First Nickel reported a second quarter loss of 33.1 million dollars.
The company issued a statement this morning saying that their principle lender, Resource Capital Fund V L.P. (“RCF V”), "has demanded repayment of all of the obligations owing to it by the Corporation and issued a notice of intention to enforce its security under the Bankruptcy and Insolvency Act (Canada) (the “BIA”). RCF V has brought an application for the appointment of KSV Kofman Inc. as a receiver of First Nickel under the BIA and the Courts of Justice Act (Ontario)."
"Following discussions between the Corporation and RCF V, the directors of First Nickel have consented to the early enforcement by RCF V of its security and to the appointment of a receiver over the property of First Nickel. The application for the appointment of a receiver is being heard today in Toronto at the Ontario Superior Court of Justice (Commercial List). Further information will be provided in due course."
Representative with the union say that FNI has assured them that employees will receive their pay cheques and any vacation pay owing to them on Thursday. The union also says it negotiating employee severance. They also that while employees of the mine wouldn't have accumulated the 30 years to collect a pension, however the time is portable and carry over to another workplace.
---
August 20th, 1025 8:30am - There are UNCONFIRMED reports circulated that employees of First Nickel Inc. arrived to a locked gate this morning at Lockerby Mine and were told by security that the mine was closed.
We sent emails to the company requesting a statement. If anybody has any information to pass along, please PM, email or call our hotline at 705.479.5016.
More to come as it becomes available.