The Sunshine Mine in northern Idaho’s Silver Valley is changing hands, as Canadian mining company Minco Silver Corporation says it will pay $62.3 million to Sterling Mining Company.
Sterling disclosed last month that financial problems had forced it to consider unloading assets or finding a partner. Sterling bought the dormant Sunshine Mine in 2003 and began initial production last December after the construction of a 5,000-foot tunnel that allowed miners a second escape route and to bring in more machinery.
However in June, Sterling said cash flow had been impaired by delays in production due to extreme weather, safety inspections, equipment failures and other problems, forcing it to seek “strategic alliances.”
Sterling CEO Ken Berscht says the package, including a $15 million line of credit from Minco will help keep the Sunshine Mine’s operations afloat. (AP)