North American Tungsten is hoping to restart its Cantung mining operations in July, says Stephen Leahy, the company's chair and CEO.

Leahy said recently from Vancouver the company is in the unique position of being able to get back into production without a lot of fuss to take advantage of tungsten prices that are pushing their way through the roof.

'The first step is to get these contracts signed up this month; that is what we are hoping for,' Leahy said about securing the necessary customers.

He does not believe he'll have a problem, as he has remained in touch with those in the tungsten business.

North American Tungsten announced in early April it has raised $10.5 million through private placement financing, in addition to an existing interest with the Kaska Nation to inject a further $3 million into the company.

If all goes according to plan, with supply contracts secured, North American will begin recruiting staff with an aim of mobilizing in mid-June for commencement of production in late July, Leahy explained.

The company has fulfilled the requirements of the bankruptcy protection it was under since closing abruptly in December 2003.

Cantung opened in 1962, shut down in 1986 but restarted operations in March 2002 in an arrangement with two international tungsten consumers who bankrolled the restart.

The two companies, however, cancelled their contracts in December 2003, arguing they'd gone as far as they could in supporting North American, which they said was failing to fulfill its end of the bargain.

North American maintained the companies had no just or legal reason to cancel the contracts. Trading of its stock was frozen, and the company sought and received bankruptcy protection, and then sued Osram Sylvania Products Inc. and Sandvik AB.

Leahy won't discuss the details of the legal proceedings that were settled behind closed doors. He does, however, point out that the two companies ended up leaving an outstanding $5.5 million US on the table in exchange for a $300,000-payout and $600,000 worth of product within two years of any commencement in production.

Leahy said North American is in a much stronger position going into this restart because it's free and clear of any debt, and is not carrying a loan payment as part of its operating cost, as it was under the Osram-Sandvik deal.

The companies consumated the deal with an agreement that the international consumers would purchase tungsten at $60 per unit. The companies cancelled their supply contracts when tungsten was selling for around $40 per unit.

Today, the price of tungsten is hovering around $175 to $185 per unit.

Leahy said he can't discuss what price the company is looking at as it attempts to secure new supply contracts, only that it will be more than the $60 per unit that it had entered into with Osram-Sandvik.

The significant rise in tungsten prices is simply an issue of supply and demand. Leahy suspects the major factor is China, the world's largest producer of tungsten, and its increased consumption and reduced export of the commodity, he said.

Regardless of how production plans go, North American Tungsten will be moving forward this season with a $1.3-million exploration program on its MacTung property and neighbouring deposits, located primarily in the Yukon though with sections stretching into the Northwest Territories.

MacTung, said Leahy, is the world's largest known deposit of tungsten. It's located north of the Cantung deposit.

The Cantung mine is located just inside the N.W.T., though the only road access is through the Yukon.

Scores of Yukon businesses received 20 cents on the dollar through the bankruptcy procedure.

Leahy said North American is thankful the unsecured creditors agreed to the bankruptcy package, but reiterated the sudden shutdown was not the company's doing.