A once-promising iron ore project near Ignace that went into receivership in 2014 has been sold to a British Columbia-based company.
Ambershaw Metallics Inc., a subsidiary of Legacy Hill Resources Ltd., purchased the property for an undisclosed amount on Nov. 18, and is excited about the potential of the property. The purchase was confirmed with the filing of Certificate with the Superior Court of Ontario by receiver A. Farber & Partners Inc.
London, England-based Legacy Hill Resources has specific experience in magnetite (iron ore) mining and pelletizing technology.
According to information on the receiver’s website: A. Farber & Partners was appointed receiver over the assets, undertakings and properties of Bending Lake Iron Group by Superior Court of Ontario in August 2014 after an application was made to the court by 2403177 Ontario Inc.
Court documents show the company owed more than $6 million, including a $3.5-million loan to creditors.
The $3.5 million in principal and interest was owed to a “credit facility” whose principals are Stuart Livingston, James MacLean and Arm’s Length Holdings Inc. No payments had been made since November 2012.
The company owed more than $62,000 to the Ministry of National Revenue, and almost $5,800 to the Ministry of Northern Development and Mines for taxes in connection to 49 mining claims near Ignace.
Shortly after the property was purchased, Oslo, Norway-based Intex Resources ASA entered into an agreement to acquire a 51 per cent interest in Ambershaw Metallics.
The US$7 million agreement remains subject to entering into a shareholder and management agreement with Legacy Resources and satisfactory due diligence.