2023-08-19 18:42:29
According to Tergeo’s press release, Mr. Perras announced the temporary shutdown of operations to employees in a meeting earlier this week. This temporary stoppage was put in place “in order to meet the requirements of the principal creditor and to facilitate the conclusion of an agreement between the financiers during this period”.
Tergeo settles in Val-des-Sources
For several months, the president had been looking for interim financing of approximately $100 million in order to avoid the suspension of activities and this temporary layoff, but an agreement with potential investors was not concluded in time.
However, Mr. Perras reiterates in his press release that his intention is “to find a lasting and satisfactory solution” to the situation.
Tergeo is still looking for a private financial partner to move forward with the construction phase of its industrial complex for the extraction and beneficiation of critical minerals valued at $1.7 billion.
Well aware of the matter, the member for Richmond André Bachand assures that the magnesium sector remains a priority of the Legault government and of its Minister of Economy, Innovation and Energy and Minister responsible for Regional Economic Development, Pierre Fitzgibbon.
“We’ve been there since the start and we’re not going to let go,” assures André Bachand.
“Then what is the solution? It takes a new structure, but which one? It may take some time to find. Quebec has already done its part, it is up to the private sector to do its own, and by committing to the end of the project, not by trying to withdraw at the first opportunity. It’s a shame to find yourself in this situation, and it’s unfortunate to jeopardize the expertise developed over the past few months. But before thinking regarding relaunching the project, you have to see with which players and what editing it can be done. We continue to be there to support them”, reiterates André Bachand, recalling that Quebec has already invested tens of millions in the magnesium adventure.
Even if his Municipality is not a financial partner of the Tergeo project, the mayor of Val-des-Sources, Hugues Grimard, ensures that his door remains open.
“Tergeo is a transparent corporate citizen and if they need to, they will call on us, we are always listening,” notes Hugues Grimard, who nevertheless says he is concerned regarding the situation.
“It’s never ideal to slow down, but sometimes it’s better to take a step back than to completely escape the situation. Finding 100 million is not easy, but I feel reassured by the fact that the government has included the upgrading of minerals and metals in its economic development strategy. It confirms to me that there is a future and that there is room for discussion,” argues Hugues Grimard, also prefect of the MRC des Sources.
If the latter hopes that employees will be called upon to remain at Tergeo during the announced temporary closure, he also recalls that the others have access to an interesting job market in Val-des-Sources itself, but also in the neighboring towns.
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