07/27/2015 19:34 EDT | Updated 07/27/2016 01:12 EDT

Australian company interested in buying troubled Yukon zinc, silver mine

WHITEHORSE — An Australian company wants to buy a zinc-and-silver mine from a cash-strapped Yukon firm.

MinQuest says in a news release that it has submitted a conditional purchase offer for the Wolverine Zinc Mine owned by the Yukon Zinc Corp. (TSXV:YZC).

The mine halted production in January and received court protection from its creditors in March.

Court documents show the mine owes $647 million, after losing more than $50 million a year since achieving commercial production in 2012.

MinQuest says it wants to buy the underground mine, its processing and management facilities, office, tailings, workshops, power station and operating licences. 

The company says it wants to examine the possibility of using the mine's existing facilities to "fast track" the Fyre Lake copper project in the territory's southeast. (Whitehorse Star, The Canadian Press)

The Canadian Press