Billiton Resources, a unit of Royal Dutch/Shell Group of Companies, recently made an offer to buy the 32.9% interest in the Hanson Lake polymetallic deposit owned by Trimin Resources (TSE). The terms of the offer have not been disclosed. Randy Turner, president of Trimin, said details will not be released until the company’s directors have an opportunity to study the offer.
Trimin is exploring the Hanson Lake deposit, 40 miles west of Flin Flon, Man., under the terms of an agreement with Crown corporation, Cameco, which owns the remaining 67.1%.
Preliminary reserve estimates put the bulk of the reserves in the No. 2 lens with 10.8 million tons grading 0.95% copper, 5.76% zinc, 0.42% lead, 0.015 oz. gold and 0.73 oz. silver per ton. The chances of increasing reserves is considered very good as the No. 2 lens remains open on strike and to depth.
Cameco has the right of first refusal on Trimin’s interest. Turner told The Northern Miner he did not know if Cameco received an offer as well, or even if the company is aware of the terms of the Billiton offer.
The news did not seem to excite shareholders. Although Trimin’s price moved up to the $3 level from $2.60 during the week prior to the offer, after the issue resumed trading following a halt, the price remained unchanged at $3.
Trimin currently has about $500,000 in working capital, no debt, and about 4.1 million shares outstanding. Fully diluted, the issued capital would increase to about five million shares.
Be the first to comment on "Trimin mulling offer for Hanson Lake"