Vancouver's Oracle Mining in receivership
Oracle Mining Corp. (TSX-V:OMN), a Vancouver-headquartered junior mining company focused on a single copper project in Arizona, has gone into receivership, is now halted from trading and its directors and chief executive officers have resigned en masse.
Oracle, which has been focused on reviving an idled copper-silver mine—the Oracle Ridge mine near Tucson—has had financial problems since 2014.
The Oracle Ridge mine had been in operation from 1991 to 1996. Oracle had been working towards restarting the mine.
In May 2014, the company ceased drilling in order to reduce its cash burn. In 2015 it voluntarily delisted from the TSX and went down to the TSX Venture exchange.
According to 2015 third quarter financials, the company had a working capital deficit $8.7 million and an accumulated deficit of US$98.6 million.
On December 8, 2015, Vincere Resources Holding LLC, a principle lender, called in its US$6.7 million loan after the company failed to achieve required milestones in 2015.
Christophe Bernard, co-president of Vincere, was also CEO of Oracle, until his resignation, along with all other directors and the company’s chief financial officer , on December 30.
On December 23, the company received approval from the Superior Court of Arizona to appoint a receiver and on December 24, 2015 IIROC (Investment Industry Regulatory Organization of Canada) halted trading in Oracle shares.
A spokesman for Oracle could not be reached for comment.