Canadian company Trevali Mining's 90%-owned subsidiary in Burkina Faso has filed for liquidation, effectively kicking off a gradual shutdown process that includes the disposal of all assets in the country.
The miner said a liquidator will be appointed by the west African country's Judicial Tribunal of Commerce in the coming days, which will assume responsibility for the management of the affairs of Nantou Mining.
Trevali said the unit's liquidity position had deteriorated significantly in the months following a flash flood at its Perkoa zinc mine in April, which trapped and killed eight miners.
The fatal event, the substantial funding requirements to carry out a restart of operations and the continued geopolitical uncertainty in Burkina Faso, including the coup d'?(C)tat on Sept. 30, triggered Trevali's decision, it said in the statement.
The move follows the exit of the Vancouver-based miner's president and chief executive Ricus Grimbeek, and charges of involuntary manslaughter filed against two Perkoa mine managers last month.
It also comes after the company filed an application for creditor protection under Canada's Companies' Creditors Arrangement Act (CCAA) and was delisted from the Toronto Stock Exchange. Trevali is currently under protection from its creditors in Canada until Oct. 18.