Their full value has yet to be determined, but Santa may have just dropped some massive gold nuggets in the stockings of those who lost out in the 2015 insolvency of Essar Steel Algoma Inc.
SooToday has learned that a mining asset formerly owned by Algoma Steel, previously thought essentially worthless, may give Essar creditors a significant stake in a still-under-construction mine expected to produce 5.5 million ounces of gold, with potential for more.
In a Toronto courtroom on Wednesday, Superior Court Justice Peter J. Osborne ordered that Essar Algoma remain under insolvency protection until June 30, 2023.
Essar's protection from its creditors was to expire at year's end.
The extension will allow accounting firm Ernst & Young, acting as court-appointed monitor, time to sort out whether Essar Algoma creditors are entitled to a piece of the Geraldton, Ont. gold mine's action.
Essar Algoma's name was ingloriously changed to Old Steelco Inc. after most of its assets were sold to new owners in November, 2018.
The new owners are carrying on business under the 120-year-old steelmaker's original name, Algoma Steel.
A handful of old Algoma Steel mining properties, many acquired by the steelmaker during the 1900s, were among the last Old Steelco properties to be sold off as the monitor worked to close the insolvency file.
In a report prepared last week, Brian Denega and Allen Yao, both vice-presidents at Ernst & Young's Toronto office, said they had "obtained information indicating that Old Steelco is the holder of a five per cent net profit interest royalty and a two per cent net smelter royalty under mining royalty agreements entered into by a predecessor of Old Steelco in respect of mineral claims near Geraldton, Ont. operated by Greenstone Gold Mines."
"Based on information made available to the monitor to date, it appears that there may be material value to the Greenstone Royalties," Denega and Yao wrote.
"The monitor has taken steps to gather additional information needed to assess the value of the Greenstone royalties, including contacting the owner of the Greenstone Gold Mines."
"The monitor will consult with stakeholders and consider options to realize upon the value of those royalties once sufficient information has been received."
"The monitor will report to this court and seek directions with respect to activities regarding the Greenstone Royalties, if needed."
As SooToday's sister publication Northern Ontario Business reported this week, construction of the Greenstone Gold Mine is at the 50 per cent mark.
The first gold pour there is planned for the first half of 2024.
The massive project is creating 1,800 construction jobs and more than 500 mining-related jobs.
Over the mine's estimated 15-year lifetime, more than 5.5 million ounces of gold will be produced there.
Based on current gold prices, 5.5 million ounces could be worth $3.5 billion.
The insolvency of Essar Steel Algoma saddled 125 Sault creditors with more than $38 million in debt.
The following list of local unsecured creditors of Essar Steel Algoma Inc. was compiled by SooToday from unaudited court records in November 2015:
TRIPLE M METAL LP
SAULT STE. MARIE ON
$4,051,098
ALGOMA TUBES INC.
SAULT STE. MARIE ON
$1,566,395
SUPERIOR INDUSTRIAL SERVICES
SAULT STE. MARIE ON
$1,477,928
R.F. CONTRACTING
SAULT STE. MARIE ON
$1,400,747
INTER ONTARIO EQUIPMENT RENTAL
SAULT STE. MARIE
$1,197,130
S&T INDUSTRIAL INC.
SAULT STE. MARIE ON
$761,016
NATIONAL TRANSPORTATION
SAULT STE. MARIE ON
$698,459
PURVIS MARINE LTD
SAULT STE. MARIE ON
$650,004
BICKELL SCRAPPIES MOBILE AUTO CRUS
SAULT STE. MARIE ON
$636,901
PUC SERVICES INC
SAULT STE. MARIE ON
$629,908
SLING-CHOKER MFG (SAULT) LTD
SAULT STE. MARIE ON
$579,189
ALGOMA INDUSTRIAL LTD.
SAULT STE. MARIE ON
$485,663
BDI CANADA INC
SAULT STE. MARIE ON
$471,645
WESTBURNE RUDDY ELECTRIC
SAULT STE. MARIE ON
$463,779
BETA FLUID POWER
SAULT STE. MARIE ON
$370,407
POWER FUELS AND LUBRICANTS INC
SAULT STE. MARIE ON
$365,025
MCLEOD BROS MECHANICAL
SAULT STE. MARIE ON
$362,045
AIR LIQUIDE CANADA INC
SAULT STE. MARIE ON
$359,060
ENVIROTEK SEALING AND FIBERGLASSING
SAULT STE. MARIE ON
$349,434
NATIONAL SUPPLY CENTRE LTD
SAULT STE. MARIE ON
$340,985
PORPEALIA REPAIRS
SAULT STE. MARIE ON
$325,968
FOUNTAIN TIRE
SAULT STE. MARIE ON
$318,289
SYSTEM INT'L MACHINE SHOP LTD
SAULT STE. MARIE ON
$313,495
WAJAX INDUSTRIAL COMPONENTS
SAULT STE. MARIE ON
$303,261
GHD LIMITED
SAULT STE MARIE ON
$301,140
TOROMONT
SAULT STE. MARIE ON
$299,133
BELTERRA CORPORATION
SAULT STE. MARIE ON
$299,012
HYDRAULIC SOLUTIONS
SAULT STE. MARIE ON
$295,980
NEDCO
SAULT STE. MARIE ON
$254,740
SAULT COLLEGE OF APPLIED ARTS
SAULT STE. MARIE ON
$254,454
GROUP HEALTH CENTRE
SAULT STE. MARIE ON
$234,859
1848707 ONTARIO LTD.
SAULT STE. MARIE ON
$213,697
WEBER SUPPLY CO INC.
SAULT STE. MARIE ON
$212,682
RAINONE CONSTRUCTION (2007) LTD
SAULT STE. MARIE ON
$212,468
SOO FOUNDRY & MACHINE
SAULT STE. MARIE ON
$207,870
MANITOULIN TRANSPORT
SAULT STE MARIE ON
$183,376
H WELLWOOD & SONS
SAULT STE. MARIE ON
$181,653
CHINA STEEL INC.
SAULT STE. MARIE ON
$173,077
WOLSELEY CANADA INC
SAULT STE. MARIE
$168,012
GUILLEVIN INTERNATIONAL INC
SAULT STE. MARIE ON
$160,445
CONSTRUCTION EQUIP (SAULT) INC
SAULT STE. MARIE ON
$151,332
RECTOR MACHINE WORKS LTD
SAULT STE. MARIE ON
$150,346
STERLING CRANE
SAULT STE. MARIE ON
$143,078
1372055 ONTARIO LIMITED
SAULT STE. MARIE ON
$142,649
FINAL TOUCH PROPERTY
SAULT STE. MARIE ON
$138,995
SOO ENVIRONMENTAL SERVICES LTD
SAULT STE. MARIE ON
$129,752
LAKEWAY TRUCK CENTRE LTD
SAULT STE. MARIE ON
$111,446
SHELL CANADA LTD
SAULT STE. MARIE ON
$108,165
SYLVAN AUTOMATION LTD
SAULT STE. MARIE ON
$103,319
ARGO INDUSTRIAL SERVICES
SAULT STE. MARIE ON
$97,213
SAFE & SOUND
SAULT STE. MARIE ON
$90,790
PINCHIN
SAULT STE. MARIE, ON
$87,301
TRADERS STEEL WAREHOUSE
SAULT STE. MARIE ON
$86,980
MCDOUGALL FUELS
SAULT STE. MARIE ON
$85,769
CANADIAN BEARINGS LIMITED
SAULT STE. MARIE ON
$85,421
CHRISTIE'S CAMPER SALES LTD.
SAULT STE. MARIE ON
$83,050
MICROAGE COMPUTER CENTRES
SAULT STE. MARIE ON
$74,332
STONE'S OFFICE SUPPLY INC
SAULT STE. MARIE ON
$55,615
EQUIPMENT WORLD INC
SAULT STE. MARIE ON
$50,708
ALGOMA UNIVERSITY
SAULT STE. MARIE ON
$50,000
NFP NORTHERN FLUID POWER
SAULT STE. MARIE ON
$47,540
THAYER LUMBER CO LIMITED
SAULT STE. MARIE ON
$46,224
MICROAGE TECHNICAL SERVICES
SAULT STE. MARIE ON
$44,096
SPECTRUM TELECOM GROUP LTD
SAULT STE. MARIE ON
$43,091
WASTE MANAGEMENT OF CANADA
SAULT STE. MARIE ON
$38,721
GREYWALL COATINGS INC.
SAULT STE. MARIE ON
$33,779
PARTSOURCE
SAULT STE. MARIE ON
$30,895
SHAW MILLING LTD
SAULT STE. MARIE ON
$29,622
SERVICE RENTALS & SALES
SAULT STE. MARIE ON
$26,697
ELLIOTT ENGINEERING
SAULT STE. MARIE ON
$24,386
ALGO ELECTRIC LTD
SAULT STE. MARIE ON
$23,311
S&T ELECTRICAL CONTRACTORS LTD
SAULT STE. MARIE ON
$21,014
DULUX PAINT
SAULT STE. MARIE ON
$17,775
FISHER WAVY INC
SAULT STE. MARIE, ON
$17,104
RAINONE SERVICES
SAULT STE. MARIE ON
$16,745
SUPERIOR PROPANE INC.
ECHO BAY ON
$16,048
SUPERIOR SLAG PRODUCTS INC.
SAULT STE. MARIE ON
$15,479
STEM ENGINEERING GROUP INC
SAULT STE. MARIE ON
$15,396
TMS TRUCK CENTRE LTD
SAULT STE. MARIE ON
$15,376
MAIN FILTER INC
SAULT STE. MARIE ON
$15,222
STEEL SPEED INC
SAULT STE. MARIE ON
$14,620
OCP CONSTRUCTION SUPPLIES INC
SAULT STE. MARIE ON
$14,432
PURE H2O
SAULT STE. MARIE ON
$13,023
CLIFFS NATURAL RESOURCES
CLEVELAND OH
$12,377
CLIFFE PRINTING (1979) LIMITED
SAULT STE. MARIE ON
$12,535
H R LASH LIMITED
SAULT STE. MARIE ON
$11,941
BATTLEFIELD EQUIPMENT RENTALS
SAULT STE. MARIE ON
$10,376
PRO NORTH ROOFING & GENERAL
SAULT STE. MARIE ON
$9,600
ALGOMA CONSTRUCTION SERVICES
SAULT STE. MARIE ON
$8,965
RUSCIO MASONRY AND CONSTRUCTION LTD
SAULT STE. MARIE ON
$8,586
PROPERTY MASTERS
SAULT STE. MARIE ON
$8,425
BRANDES AGGREGATES LIMITED
SAULT STE. MARIE ON
$7,614
BONIFERRO MILL WORKS ULC
SAULT STE. MARIE ON
$7,500
BDO CANADA LLP
SAULT STE. MARIE ON
$6,780
MAITLAND LEWIS MOTORS LTD
SAULT STE. MARIE ON
$5,939
BERGAMIN'S FOOTWEAR & REPAIR
SAULT STE. MARIE ON
$5,259
DUMANSKI OFFICE INTERIORS
SAULT STE. MARIE ON
$4,975
GLASS EMPLOYEE'S LTD
SAULT STE. MARIE ON
$4,076
SOO RAINBOW SPRINKLERS
SAULT STE. MARIE ON
$4,054
LYONS BUILDING CENTRE
SAULT STE. MARIE ON
$3.972
ALGOMA AUTO-ELECTRIC REBUILDERS
SAULT STE. MARIE ON
$3,968
DIXON ELECTRIC (SSM) LTD.
SAULT STE. MARIE ON
$3,808
SOO MILL AND LUMBER CO LTD
SAULT STE. MARIE ON
$3,628
PINE ISLAND WOOD PRODUCTS
DESBARATS ON
$3,600
RA ENGINEERS & INSPECTORS INC
SAULT STE. MARIE ON
$2,908
THE SAULT STAR
SAULT STE. MARIE ON
$2,860
NUTRI-LAWN
SAULT STE. MARIE ON
$2,695
HOWARD AVERY CONSTRUCTION LTD
SAULT STE MARIE ON
$2,683
MOBILE GLASS & FRAMING GALLERY
SAULT STE. MARIE ON
$2,647
MDIS INTELLIGENCE
SAULT STE. MARIE ON
$2,224
APR WELDING CONSULTANTS
SAULT STE. MARIE ONa
$2,147
GREAT LAKES BUS TOURS
SAULT STE. MARIE ON
$2,034
SPADONI'S FURNITURE & APPLIANCE
SAULT STE. MARIE ON
$1,961
G&K SERVICES CANADA INC.
SAULT STE. MARIE ON
$1,838
MANZZUTTI MARINE SERVICES
SAULT STE. MARIE ON
$1,836
HOLLOWMETAL ARCHITECTURAL HARDWARE LTD
SAULT STE. MARIE ON
$1,681
GARDEWINE GROUP INC.
SAULT STE MARIE ON
$1,577
TML SUPPLY INC
SAULT STE. MARIE ON
$1,564
SOO VAN & STORAGE
SAULT STE. MARIE ON
$1,516
ALL NORTH TRUCK CENTRE
SAULT STE. MARIE ON
$1,500
TRIO SUPPLY
SAULT STE. MARIE ON
$1,240
A K GRAPHIX
SAULT STE. MARIE ON
$1,120
ALGOMA OFFICE EQUIPMENT
SAULT STE. MARIE ON
$1,015
— SooToday, with files from Ian Ross, Northern Ontario Business
