RB Energy Inc. and Quebec Lithium Inc. (“RB”) is engaged in the acquisition, exploration, development and mining of mineral resource properties in Canada and internationally. Its principal operations are a lithium mine and chemical processing plant in Quebec and its indirect interest in an iodine mine in Chile. RB’s secured obligations exceed $100 million.
RB commenced proceedings under the Companies’ Creditors Arrangement Act in the Quebec Superior Court in October, 2014. Following an unsuccessful sale process, the DIP Lender in the CCAA proceedings brought a receivership application in May, 2015 to appoint our firm as the Receiver of RB’s business and assets, including the Quebec Lithium mine. Our mandate included working with stakeholders to oversee a process to determine the viability of the mine, as well as addressing the care and maintenance of the mine, including monitoring environmental matters and corresponding regularly with Federal and Provincial environmental regulatory bodies.
The receivership proceedings resulted in a going-concern sale of the assets used in the lithium mine and chemical processing plant in Quebec, and an option to acquire RB’s indirect interest in the entity which operates an iodine mine in Chile. The transaction was supported by the Quebec government and approved by the Quebec Superior Court.