Main secured creditors, the government of Quebec and its partner, the company Orion, present an offer to purchase 100% of BlackRock Metals, which has placed itself under the protection of the Companies’ Creditors Arrangement Act (LACC) on December 23.
Founded in 2008, BlackRock aims to produce high purity crude iron, ferranadium and titanium slag, essential minerals in the electrification of the economy and the reduction of greenhouse gas emissions.
The deposit is located near Chibougamau and the metallurgical complex is to be built at the port of Saguenay. BlackRock needs US $ 1.1 billion to move forward with its ambitious project, Controller Deloitte said in a statement.
In 2018, Investissement Québec (IQ) announced an investment of 185 million in shares and loans in BlackRock Metals. In an email sent to Press, IQ specifies having disbursed 52.5 million (and not 185 million) since the beginning of the project, that is to say 20 million in actions and 32.5 million in priority debt.
Since 2018, BlackRock Metals has unsuccessfully solicited 150 institutional investors, including the Fonds de solidarité FTQ and the Teachers pension fund. She also made contact with around fifty family wealth managers and around ten European capital funds.
Two days before Christmas, BackRock had to resolve to seek protection from the LACC because it doesn’t have the money to pay off its major creditors.
It is in conflict with its main unsecured creditor, Prosperity Materials Macao Commercial Offshore, to whom it owes US $ 40 million. Its main secured creditors are Investissement Québec and Orion Resource Partners. The junior owes them 90 million.
In total, BlackRock owes CAN 94.4 million and US $ 40 million, according to the list of creditors prepared by Deloitte. Other than secured creditors, IQ and Orion, the rest will not see their money again.
Controller Deloitte expects to start the process of selling the company around February 9. He wants an outcome by May 2022.
IQ and Orion would become 100% owners of BlackRock Metals in return for the guaranteed amounts due to them. This purchase agreement will serve as a starting screen offer in connection with the sale of BlackRock Metals.
If this offer were to be accepted and ratified by the court, the current shareholders of BlackRock would lose their stake.
The main shareholders are Winner World at 46%, Orion at 18% and the Government of Quebec at 12%. Over the years, BlackRock has raised approximately $ 67 million in shares for a total of 149 million shares.
The objective, the company explains in a press release, is to arrive at a transaction “which will improve the possibility for BlackRock to obtain the financing necessary for the construction and completion of the BlackRock Metals metallurgical plant project in Quebec. which aims to become the developer of specialty metals in North America, ”reads the press release announcing the use of LACC.
The next court hearing is scheduled for January 7.
With Julien Arsenault, Press