Richard Gleeson
Northern News Services

NNSL (Apr 19/99) - After months caught up in death throes, the owner of Yellowknife's Giant Mine has finally succumbed to financial ruin.

Justice James Farley ordered Royal Oak into receivership in a Toronto courtroom Friday at 6:00 p.m. The accounting firm PricewaterhouseCoopers were appointed the receivers.

Minutes after the decision, Royal Oak spokesperson Pat Howe said: "The board of directors has resigned. Peggy Witte has resigned but will act in an advisory capacity to assist in the transition."

Following Friday's ruling, PricewaterhouseCooper immediately dispatched agents to each of the former Royal Oak properties.

Two financial advisors from the receiver met with union representatives and mine management at Giant offices at 3:00 p.m. Saturday.

Following the 40 minute meeting, the PricewaterhouseCooper official refused comment, but CASAW President, Marc Denis, said he was assured by the receiver that there will be no lay-offs or firings.

"Business as usual, that's what they told us," Denis said following the meeting. "They said as of today, everybody is staying put."

In the interim, Denis said the receiver has allocated $20 million to keep all former Royal Oak mines operational.

"For now we're relieved," he said. "We've still got a job to go to on Monday, but there is a feeling of foreboding that will still be there until a buyer is found."

The court has ordered PricewaterhouseCooper to come up with a marketing plan by April 26, to begin the sale of Royal Oak assets.

All of Royal Oak's assets are expected to be sold off by the end of June.

While no buyer has yet expressed interest in buying Giant Mine, Denis said the union may seek ownership.

"We've had some preliminary discussions on it, but we'll bring it up to the membership and they'll have the ultimate decision on whether we do it or not," Denis said.

Following the court decision, Giant miners were in a celebratory mood at a local watering hole.

"We always told (Witte) we'd last one day longer, and we lasted a day longer, at least," said Steve Peterson, recording secretary for Canadian Auto Workers Local 2304, which represents the 267 workers at the mine.

Pivotal to the future sale of Giant is the federal government's willingness to subsidize or completely finance the estimated $250 million cost of cleaning up the arsenic trioxide stored underground at the mine.

A few hours before the decision, DIAND's lead official on the Giant Mine issue said there is no federal money in the offing.

"At this point in time the clean-up is the responsibility of Royal Oak or the company that succeeds Royal Oak," said Dave Nutter.

Judge Farley's court order absolves PricewaterhouseCooper of any liability for the clean up of Royal Oak's properties.