The money would be used to finance a stripping program and to make mechanical improvements at the mill. The stripping program is expected to last three months before operations could start again.

A senior vice-president with the company says he's optimistic the mine will re-open in 1997, but Victor Wells says there's "still a lot of things to be done." Victor Wells is the vice-president of finance and CFO in Toronto.

Several factors are in the company's favor to re-open the mine, such as better zinc prices and foreign exchange rates, he says.

There were many reasons why Anvil Range's mine near Faro closed in December 1996.

"There were mechanical difficulties in the mill and we got behind in our stripping. And lead and zinc prices had fallen."

With production below budgeted levels, mining operations were "temporarily suspended" Dec. 20.

The company retained RBC Dominion Securities last week as its financial adviser to assist in a comprehensive review of its refinancing alternatives.

Under consideration are restructuring of 8.5 per cent convertible debentures, a rights offering and other public or private offerings of equity securities.

Anvil Range owns zinc, lead and silver deposits near Faro.

It's main deposit at the site, the Grum deposit, had been operating for about two years when it was shut down last December.

The Grum open-pit deposit has a total working life of five to six years, he says.

Another area, further down the road from the Grum, is known as Grizzly. "It's not a reserve at this point but it has a projected life of 15 years," Wells said.

At full tilt, the Grum open-pit mine employed about 400 people. The aim is to start first with a stripping program and Wells says the number of employees that might be hired is under review.