Yukon Zinc sues Wolverine mine contractor Procon Mining

3 February 2015 (Last Updated February 3rd, 2015 18:30)

China-based Yukon Zinc has accused contractor Procon Mining of trying to gain a financial benefit for its Wolverine mine in south-east Yukon, Canada.

China-based Yukon Zinc has accused contractor Procon Mining of trying to gain a financial benefit for its Wolverine mine in south-east Yukon, Canada.

In autumn 2014, Yukon Zinc filed documents in a BC civil court saying that Procon Mining and its lawyers had overstated the amount of money owed by Yukon in public filings, in a conspiracy to harm the company's reputation.

Procon is said to have filed a miners lien against Yukon Zinc on 8 September 2014 for $17,869,168, which Yukon refused, saying that the amount owing stood at $56,698, cbcnews reported.

"Procon Mining has no right to register the inventory and concentrates of Wolverine mine as security."

Further, the Chinese company said that Procon Mining has no right to register the inventory and concentrates of Wolverine mine as security.

In January this year, Yukon Zinc announced the temporary closure of Wolverine mine due to low commodity prices.

The high-grade zinc-silver-copper-lead-gold underground mine has on-site milling capabilities of 1,700t a day to produce zinc, copper and lead concentrates.

Throughout 2009 and 2010, Yukon Zinc completed major site construction at Wolverine and mill commissioning commenced in late 2010, with operations starting in 2011.

The mine is located 282km north-east of Whitehorse capital city, 190km north of Watson Lake.

Encompassing 107km², the property is accessible either through a 26km access road west of the Robert Campbell Highway or a 1,340m-long, all-season, gravel airstrip.