A kaolin processing plant that opened with much fanfare near Wood Mountain, Sask., in 2008 has closed and is in receivership.
Whitemud Resources Inc., based in Calgary, announced in mid-November it was suspending operations after a financing deal fell through. Werklund Capital Corp., also of Calgary, had in October offered $15 million in secured convertible debenture financing.
When that offer was withdrawn, Canadian Western Bank applied to the court to put Whitemud into receivership. It holds security over all of Whitemud’s property.
Deloitte &Touche Inc. is the court-appointed receiver and monitor. It is seeking purchasers for the plant as a turnkey operation.
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Senior vice-president Vic Kroeger said offers will be accepted until Feb. 14.
“There is interest in the assets,” he said Jan. 7.
Assets include the property, plant, equipment, quarry and road allowance leases. Whitemud holds leases totalling 12,299 acres.
A Dec. 22 notice of receivership from Deloitte shows the assets are worth about $67 million. The company also owes $11.4 million to secured creditors, $808,000 to potential priority creditors, including $757,000 for property tax to the Rural Municipality of Old Post, and $2.6 million in payables to trades.
At Wood Mountain, Whitemud processed raw kaolin into metakaolin, which is then used as an additive to strengthen concrete.
The successful purchaser is to be selected by Feb. 16 and the deal to close, subject to court approval, no later than Feb. 28.
