Elevation Gold (TSXV: ELVT) has thrown in the towel. The company has indicated that intends to file an application in the Supreme Court of British Columbia today under the Companies Creditors Arrangement Act, requesting protection from its creditors.
The initial order hearing under the CCAA is scheduled for August 1. The company meanwhile will also file a petition under chapter 15 of the US Bankruptcy Code within the District of Arizona.
The company is seeking a stay of creditor claims and proceeds, as well as the appointment of KSV Restructuring as the court-appointed monitor of the company. Elevation has stated it intends to seek options that will enable it to continue the operations of the company on a going-concern basis.
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READ: Elevation Gold Posts AISC Of $2,437 Per Gold Ounce In Q1
While under creditor protection Elevation intends to continue to operate its beneficiation facilities, while enacting an “interim cessation” of mining at the Moss Mine.
The filing follows the company in the first quarter posting an all-in sustaining cost of $2,437 per gold ounce produced, leading to a loss of $4.2 million for the period. The company produced 6,303 gold ounces and 42,152 silver ounces during the quarter. In the second quarter, 6,380 gold ounces were produced, however full financial results were scheduled to be released in August.
Elevation Gold last traded at $0.075 on the TSX Venture.
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