The Yukon Zinc Corp. and its Wolverine Mine southeast of Ross River has been sold, a Yukon Zinc spokesman confirmed this morning.
Alex Wu told Star the sale to Phoenix Global Investments was finalized in late November.
Phoenix Global wanted the sale to remain low-profile, Wu said.
“We are still in transition right now with the new ownership, and a lot of things have not been decided,” Wu said.
“So there is limited information I can share, but I can tell you it is another private group that has acquired the company.
“It is simply a change in ownership. It is no longer owned by the state-owned company of China.”
The Star was unable to contact representatives of Phoenix Global this morning.
The company was formed in 2016, with a goal of becoming a public company to attract investment to finance its expansion plans in North America, according to its website.
The website notes Phoenix Global has also signed a service agreement with another state-owned Chinese company.
Sue Thomas of the Department of Energy, Mines and Resources said this morning department officials are arranging a meeting with the new owner to learn more about their plans.
The session will provide officials with the opportunity to inform Phoenix Global about regulatory requirements and the compliance status at the Wolverine Mine, said the spokeswoman.
Thomas said the new owner will be responsible for posting the required financial security, ensuring compliance and bringing the Wolverine Mine up to current requirements.
Yukon Zinc suspended mining operations in January 2015 because of financial problems.
It went through bankruptcy proceedings that resulted in many Yukon companies and companies from Outside receiving 11.5 cents for every dollar owed.
As a result of the shutdown, approximately 200 people were laid off.
Evidence put before the court during the bankruptcy proceedings showed Yukon Zinc had lost in excess of $100 million in each of the three years it had been in production.
Since the closure, the mine has been under care and maintenance.
Yukon Zinc, however, has faced challenges maintaining compliance with its mining licence and its water licence.
In October 2017, Yukon Zinc announced it was seeking new investment to restart production. The stated aim was to eventually transition to a publicly traded company.
Last October, during the fall sitting of the legislature, Energy, Mines and Resources Minister Ranj Pillai told the assembly negotiations had occurred between Yukon Zinc and another group regarding the sale of the mine.
“As of today, it looks like there’s a new owner who wants to restart and open the mine,” Pillai told the legislature.