The Revenue-Virginius Silver Mine above Ouray has been auctioned off for $1.8 million.
Nevada-based Thorin Resources acquires property at auction
The Revenue-Virginius Silver Mine above Ouray has been auctioned off for $1.8 million.
According to Ouray County District Court documents filed Aug. 7, the mine and its assets were purchased by a company called Thorin Resources, LLC in the auction on Aug. 3, and it was one of three participants in that auction. District Judge Cory Jackson finalized the auction results with an order.
The sale is the latest event in the mine’s tumultuous 147-year history. It was most recently operated by Canada-based Aurcana Resources as the Ouray Silver Mine, and had consistent growth and potential in recent years, with a boom of hiring employees and plans for expansion. Shortly after it built and commissioned a mill to process silver concentrate and other minerals in 2021, it shut down.
Almost 200 employees were laid off and the mine operations ground to a halt.
In late July, the court ordered Alliance Management to conduct an auction to sell off the mine by Aug. 3. Alliance acted as the receiver, which had been appointed in July 2022 to protect the mine’s assets and find a new buyer for the mine by creditors who petitioned the court.
The mine company had defaulted on payments for a $28 million loan to its main financial backer, Mercuria Energy Group. Mercuria asked the court to appoint Alliance to sell the mine and protect its assets until it could sell it to recover debts.
Alliance hired a company called Three Keys Investment Advisors to conduct the sale. In the meantime, the silver mine faced roughly $10 million in lawsuits for unpaid bills, including money owed to companies here in Ouray County.
The decision to auction the mine came after Alliance contacted more than 110 potential buyers, according to court documents. Of those potential buyers, 18 parties sought more information about the sale and signed non-disclosure agreements for more information.
Earlier this year, SilverX Mining Corp. had an agreement to purchase the mine for up to $4.5 million, but withdrew after there were objections to use some of the sale proceeds to pay back Alliance Management. There were also disagreements over a road agreement with Ouray County allowing the mine to plow Camp Bird Road to access the mine.
Ultimately, there were three participants in the auction for the mine, which was conducted from the office of Alliance Management’s attorney in Denver. The court characterized Alliance’s process to sell the mine and its assets as “robust.”
Thorin Resources LLC is based in Sparks, Nevada, according to Nevada state business licensing records.
