Yukon Zinc makes offer to creditors owed money by Wolverine Mine

Yukon Zinchas made anoffer to creditors owed money from its shut down Wolverine Mine thatwould see $4.5 millionshared between creditors owed a total of $29 million.

The zinc-silver-copper-lead-gold mine, located between Watson Lake and Ross River, shut down operations in January. Yukon Zinc was granted protection from its creditors in March.

Most of its more than $600 million debt is owed to its parent company,JinDui Cheng Canada Resources Corporation, and is not part of the settlement plan.

Businesses owed less than $5,000would be paid in full. Those owed less than $9,000will get $5,000. Companies owed more than that will get either 7.5cents on the dollar or 11 cents on the dollar.

Creditor uncertain about offer

Creditors owed money by Yukon Zinc will decide on Sept. 2whether to accept the company's plan to settle its debts.

MacPhersonRentals in Whitehorse is owed than $40,000. Owner David Green says he'll have to get advice from his lawyer about the offer.

"I'm certainly not an expert in bankruptcy so I really have no idea whether or not this a reasonable offer to put in front of the creditors," he said.

The company'smonitor,PricewaterhouseCoopers, says it's also received an acceptable proposalfrom Australian company MinQuestto buy the Wolverine Mineif Yukon Zinc's restructuring plan falls through.The company owns a nearby copper-gold property and is interested in using Wolverine's mill to process its ore.

Yukon Zinc's parent company has also indicated it would like to sell the mine.