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The owner of one of the world's largest and lowest grade gold mines is filing for bankruptcy.

Allied Nevada Corp. (ANV.TO), which owns the massive Hycroft gold mine in Nevada, has reached an agreement with its note holders to restructure the company.

ANV and the supporting noteholders have also agreed on a $78 million debtor in possession (DIP) secured credit facility.

Just a couple of years ago, Allied Nevada Gold Corp had a market cap of nearly US $3 billion and the company was speculated as the next takoever candidate for the likes of Barrick, Newmont or Goldcorp in Nevada.

The company's Hycroft deposit is one of the biggest open pit gold mines in the world, with proven and probably reserves of nearly 13 million ounces at .34 grams per ton gold, and resources of about 13.5 million ounces at approx .3 grams per ton gold. There is also approx 700 million ounces of silver.

Hycroft is also one of the world's lowest grade gold mines, and was evidently unable to survive the weak gold market of the past two years.

The news is not good for the company's equity holders, however could be seen as a bottoming symbol for the broader gold mining industry.

Here is the full news release: Allied Nevada to Implement Financial Restructuring