Zinc Miner SRA Files for Bankruptcy Protection
Strategic Resource Acquisition said on Thursday it had filed for bankruptcy protection as a plunge in metals prices and tight credit conditions left the zinc miner unable to pay its bills, Reuters reported. Toronto-based SRA said it and its U.S. subsidiary, Mid-Tennessee Zinc Corp, have filed for U.S. Chapter 11 protection, and said it was also seeking protection in Canada under the Companies' Creditors Arrangement Act. Shares of the company, which traded at C$6.88 as recently as July 2007, had fallen to one-half of a Canadian cent as of Thursday, giving the company a market capitalization of just C$200,000 ($159,000). A deteriorating market forced SRA to put its Gordonsville zinc mine complex on care and maintenance in October and to stop construction of its Cumberland and Elmwood mines. All the mines are in Tennessee and all were once owned by now-defunct Pasminco of Australia. Read more.