Yocumi Silver Mine in B.C. has filed for bankruptcy protection, saying it will no longer be able to continue operations after a major mining company announced plans to close the mine.
The announcement came in a press release Wednesday from the Canadian Gold Corporation, which operates the mine, and the Yocumin Mine Association.
“The company has been advised by the Board of Directors that it is in the process of filing for Chapter 11 bankruptcy protection and that it may take up to five years to complete its reorganization,” the release reads.
“In the interim, the YOCUM Silver Mine is not permitted to resume any activities that would adversely impact the operations of the YACO Silver Mine.”
The YOCumi Silver mine was founded in 1881, and is located just north of Prince Rupert, British Columbia.
It has been the largest gold mine of its kind in Canada.
“This is the final straw for YocUM Silver,” Yocumo CEO and president Scott Smith told CBC News.
“We’re just really disappointed.
It’s a very sad day for the people of B.K.C.”
The news of the impending closure was first reported by local news outlet B.A.N.B. The mine has been in operation since it was founded more than 100 years ago.
Yocums silver mines were the site of numerous gold and silver mining operations in the 19th century.
“It’s been a great resource for all of us in the province,” Smith said.
“You’re not going to see the same kind of activity going on today.”
The Canadian Gold Corp. has not yet announced how much it plans to charge for the mine’s services, but has said that it will be paid with a tax rebate.
The company also confirmed that it was “committed to maintaining and operating Yocume Silver Mine for the benefit of the Canadian people.”
Smith said the Yochum Silver mine would be closed for the next three months, but he didn’t know how long that would last.
“I think that it’s a really good thing,” he said.
Yochumi Silver Mines will be sold to a private company “which will be able and ready to operate and provide service for our community,” the press release says.
YOCum Silver mines are the largest silver mine in the world, with approximately 3.6 million ounces of gold in the mine each year.
It is operated by Yocumen Mining Co. of Fort McMurray, Alta.