The first Minelaying Squadron, based at
Kyle of Lochalsh (code-named port ZA for secrecy), was formed in June 1940. Five fast and modern
cargo liners were requisitioned from civilian service, but the conversion to auxiliary minelayers , , , and was not completed until October. Arrival of
Town-class destroyers from the
Destroyers for Bases Agreement provided necessary escorts for the minelayers. The first minelaying mission left port ZA on 18 October 1940, and 10,300 conventional contact mines were laid at the southern end of the Iceland–Faeroes Ridge before the end of the year. Every ship struck mines. There were no crewmen lost aboard the Soviet freighter
Rodina (4441
GRT), the
Panamanian-flagged freighter
Exterminator (6115 GRT), or the American freighter
Hybert (6120 GRT); but 46 civilian crew and 9
Naval Armed Guards died aboard the American
Liberty ship John Randolph (7191 GRT) and freighters
Hefron (7611 GRT) and
Massmar (5825 GRT); and there were only eight survivors of the 127 men aboard
Niger. Only
Exterminator could be salvaged. The value of the Northern Barrage was questioned following the accident, though new fields were laid south of Iceland, before starting new deep fields on the Faeroes shelf. ==Cancelled==