Noranda Minerals, a unit of Toronto-based Noranda (TSE), recently increased its stake in Societe Miniere Louvem (TSE) to 56.6% from 52% by exercising its rights under an agreement signed in August, 1989.
Subject to regulatory approval, Noranda Minerals is set to subscribe for 1.7 million Louvem common shares priced at $3.06 per share, to bring its holdings in Louvem to 11.4 million shares.
A 3-year-old agreement gives Noranda Minerals the right to subscribe for up to two million shares from treasury at 90% of market price to finance development of Louvem’s 45% owned Louvicourt Twp. base metals project in Quebec.
Having picked up the initial tranche of 289,039 shares back in December, Noranda Minerals was planning to purchase the balance earlier this year, according to Lance Tigert, senior vice-president and treasurer. In a separate development, a US$200-million issue of Noranda Inc.’s 8.62% debentures, due July 15, 2002, has been priced in New York at $99.664 to yield 8.67%, 180 basis points over the U.S. Treasury 10-year note. Proceeds of $235 million are earmarked for general corporate purposes including reduction of short-term debt. The issue is being sold through underwriters led by New York-based Goldman Sachs & Co.
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