Asarco asks court to void 2005 Mineral Park mill sale

By Jennifer Lanning Drey

Eugene, Ore., Sept. 25 - Asarco LLC asked the U.S. Bankruptcy Court for the Southern District of Texas to void Mercator Minerals Ltd.'s July 2005 purchase of a mill located at Asarco's Mission Complex near Tucson, Ariz., according to a Mercator news release.

In its complaint, Asarco alleged that Mercator did not pay "reasonably equivalent value" for the Mission South Mill, which Asarco said voids the sale under bankruptcy law because it occurred within one year prior to the company's Chapter 11 filing, according to the release.

Mercator purchased the facility for $6 million, which the company said was Asarco's asking price for the facility.

"If Asarco believed the Mission South Mill was worth more than we paid, they were under no obligation to sell it to us," said Mike Surratt, president and chief executive officer of Mercator, in the release.

Mercator is in the process of dismantling and relocating the mill.

A hearing has been scheduled for Oct. 24 to determine whether Asarco is entitled to prevent Mercator from relocating the mill.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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