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Setback for proposed mine in British Columbia

Investor pulls out, leaving developer $45 million short in plans to re-open Tulsequah Chief mine near Taku River.

APRN: The company trying to re-open the controversial Tulsequah Chief mine in British Columbia announced a setback Tuesday. It says a big investor is pulling out of the project.

Chieftain Metals Company says it will use a bridge loan to repay a $10 million advance from Denver-based Royal Gold. Chieftain had been counting on another $45 million from Royal Gold to develop the mine, according to a July agreement that Royal Gold has now scrapped.

The Tulsequah is one of five proposed mining projects near the Taku River that have Southeast Alaskans and fishermen worried. The enormous KSM project last week won environmental approval from the Canadian government.

Chieftain Metals is proposing to move supplies into the Tulsequah -- and transport minerals out – by barging them on the Taku.