Richmont to acquire Louvem

Rouyn-Noranda-based Richmont Mines (RIC-T) has made a bid to take over Montreal-based Louvem Mines (LOV-T).

Richmont’s bid is by way of an exchange for all the issued and outstanding shares of Louvem Mines at a ratio of one share of Richmont for 11.5 shares of Louvem.

Holders of 1,149 or fewer shares of Louvem would have the option of receiving 46 cents per share, according to Richmont’s proposal, which has yet to be approved by regulators. Richmont already holds 36% of the issued and outstanding shares of Louvem.

Louvem’s chief asset is a half interest in the Beaufor gold mine, 26 km east of Val d’Or, Que., which produces 30,000 oz. per year. It also produces gold at the Nugget Pond mine in Baie Verte, Nfld., and at the Francoeur mine in Quebec’s Beauchastel Twp.