Vancouver subsidiary of troubled Mercator Minerals puts up primary asset for sale

El Pilar copper mine in Mexico | Photo: Mercator Minerals

The Vancouver-based subsidiary of troubled Mercator Minerals (TSX:ML) is selling off its primary mining development project in bid to repay its primary creditor.

Stingray Copper announced October 6 it had initiated the process to sell its El Pilar copper development project in Mexico.

The mining company had negotiated a forbearance arrangement with creditor RMB Australia, allowing the miner to continue with normal business at El Pilar while the sales process was ongoing.

Mercator filed for creditor protection in late August after accumulating debts as high as $500 million, according to packages sent to creditors.

Its entire leadership team resigned from the company in early September .

Russian billionaire Mikhail Prokhorov announced plans to buy Mercator in December 2013 .

Prokhorov, who also owns the NBA’s Brooklyn Nets, was attempting a reverse takeover to get his own company, Intergeo, listed on the Toronto Stock Exchange.

After Russian regulators kept delaying the deal, Prokhorov eventually stopped his efforts to buy the struggling Vancouver company in July 2014.

Mercator’s stock dropped dramatically in 2013, falling from $0.64 to $0.04.