AP reported that a mining outfit in Utah's west desert has shut down operations, furloughed employees and filed for bankruptcy protection after just a year of operation.

Copper King Mining Corporation said that it hopes to emerge stronger from Chapter 11 bankruptcy after reorganizing debts and raising money. The company, operating as Western Utah Copper Company controls lucrative iron ore and copper deposits on about 60,000 acres of leased land around Milford, Utah. It opened USD 60 million mill a year ago and employed 85 people.

Nr Anthony John Bryan turnaround adviser, who is taking over as chief executive said that the company ran out of money in middle of a startup phase for a complex and difficult mining operation. The plant they built there these things are not easy to get up and running. Three-quarters through the process, they just ran out of money.

Copper King said in a bankruptcy filing that it was unable to pay for mining leases, workers, lawyers or operations and even had its power disconnected. The filing included minutes of May 13 board meeting that ended with a vote to declare bankruptcy.

Mr David McMullin board chairman of Copper King took up the unpaid wages he said the company owed workers many were his friends and neighbors. The minutes didn't say whether or how the company planned to pay the back wages, but Mr Bryan said that he hoped to raise money quickly to call back company executives and workers.

Mr Byran CEO of The Watley Group said that "We're going to get the mining facilities operating profitability. We take over enterprises and move quickly without a lot of the emotional baggage and a lot of problems the incumbents might have had.

(Sourced from Associate Press)