UPDATE 1-Altius Minerals says NLRC to emerge out of bankruptcy

* Says SNC Lavalin unit, IJK consortium proposal overturned

* SNC unit and IJK consortium told to pay legal costs

Nov 23 (Reuters) - Canada's Altius Minerals Corp (ALS.TO) said Newfoundland and Labrador Refining Corp (NLRC), in which it owns 37 percent, is to emerge out of bankruptcy as NLRC received a court approval for its creditor proposal.

The proposal, approved by the Supreme Court of Newfoundland and Labrador, allows the resumption of efforts to attract a buyer, partner or funding to the Southern Head refining project in Placentia Bay, in Newfoundland and Labrador, Altius said.

The proposal involves sale of tangible assets and distribution of proceeds to creditors.

It also includes an agreement with Altius that sees it leave sufficient funding in NLRC to continue with efforts to attract a buyer, partner or funding to the project during the remaining permit life, Altius said.

Proposals brought by BAE Newplan, a subsidiary of SNC Lavalin Group Inc (SNC.TO) and IJK Consortium, which sought to have the vote result overturned and the company declared bankrupt were overturned, Altius said in a statement.

BAE Newplan and IJK have been ordered to pay the legal costs of NLRC, its trustee and the creditors that appeared in court in support of the proposal, the company said.

The Southern Head project is the only permitted greenfield refinery site in North America and the first to achieve such status in a generation, Altius said.

Shares of Altius, which acquires and develops natural resources projects in Eastern Canada, closed down 2 percent at C$7.89 Monday on the Toronto Stock Exchange. (Reporting by Amit Kumar in Bangalore; Editing by Gopakumar Warrier) ((amit.kumar.edit@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: amit.kumar.edit@thomsonreuters.com@reuters.net))