Adanac Molybdenum granted creditor protection

The company behind a proposed open pit molybdenum mine near Atlin, B.C. has turned to the courts for protection from its creditors.

Adanac Molybdenum's request was granted by the Supreme Court of British Columbia on Dec. 19. The company was given 28 days to restructure its finances.

Adanac had big plans for its Ruby Creek deposit, about 24 kilometres northeast of Atlin, but it needed to raise $600 million to put the mine into production.

The company said it asked for protection under the Companies' Creditors Arrangement Act  because it does not have enough money to pay its current bills.

The initial 28-day protection period expires Jan. 16 but the court could extend that.

The court appointed KPMG to monitor Adanac and review its ongoing operations.